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Accounting question
Buttermilk Bakery has provided the following cost data for the last year when 95,000 loaves of bread were produced and sold.
|
Raw materials |
$209,950 |
|
|
Direct labor |
71,250 |
|
|
Manufacturing overhead |
193,510 |
|
|
Selling and administrative costs |
155,550 |
All costs are variable except for $115,610 overhead and $81,450 selling and administrative. The sales price was $10 per loaf.
How many units must be sold to meet a target operating income of $395,356?
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