Buttermilk Bakery Has Provided the Following Cost Data for the Last

question 128

Essay

Buttermilk Bakery has provided the following cost data for the last year when 100,000 loaves of bread were produced and sold. All costs are variable except for $125,000 of the overhead and $75,000 of the selling and administrative.The sales price was $10 per loaf.
Required:
a.How many units must be sold to meet a target operating income of $405,000?
b.If Buttermilk desires a target operating income of $150,000, what is the amount of sales dollars needed to reach this target?
c.What will be the operating income from producing 90,000 loaves?

---

Definitions:

Popular

Being liked, admired, or supported by a large number of people, often in a social context.

Preferences

Individual choices or inclinations towards certain options, ideas, or items over others based on personal taste or values.

Transference

A phenomenon in psychoanalysis where emotions or desires originally associated with one person, typically from early life, are unconsciously transferred onto another in the present.

Good Friend

A person who is reliable, trustworthy, and supportive, often playing a significant role in one's social and emotional well-being.