RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year th...

  1. Home
  2. Homework Library
  3. Business
  4. Accounting
  5. RYT (aka RotYourTeeth) Candy Company sells lollipops. Last year th...

QuestionQuestion

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

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

Part 1: First, we need to break the profits from the lollipops into its component parts. If the revenue is $1,000,000 for 10,000,000 lollipops while the variable costs were $350,000 and the net profits were $100,000, this gives us the following results:

Revenue per lollipop: $0.10
Variable cost per lollipop: $0.035
Contribution margin per lollipop: $0.065...

By purchasing this solution you'll be able to access the following files:
Solution.docx.

$15.00
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Accounting Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats