View the step-by-step solution to:

# ah0This problem is worth 10% of your grade RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year the company sold 10,000,000 lollipops for...

CVP/Budgeting/Variances

ah0This problem is worth 10% of your grade RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year the company sold 10,000,000 lollipops for \$1,000,000. The Variable Costs were \$350,000 and the Net Profits were \$100,000 Administration has directed management to double profits in the next year. Part 1: Determine the Number of lollipops that must be sold to reach this target. Part 2: Determine the DL and DM budget needed to reach this target. DM: Cost \$1 per pound Each unit requires 1/50 of a pound DL: Labor costs are \$10 per hour Each unit requires .0015 labor hours Part 3: Determine the DL and DM variances and provide explanations to the Board of Directors. DM: Cost \$1.50 per pound , 220,000 pounds used DL: Cost \$12 per hour, 16000 labor hours used mmk 4/14/12

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents