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##### Comprehensive Problem 6: CVP/Budgeting/Variances This problem is-(Answered)

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Question

can u provide solution for the question provided in the attachment

Comprehensive Problem 6: CVP/Budgeting/Variances

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:

DL:

mmk 4/14/12

Cost \$1.50 per pound , 220,000 pounds used

Cost \$12 per hour, 16000 labor hours used

Paper#9209466 | Written in 27-Jul-2016

Price : \$22