Determine the dl and dm budget

Assignment Help Managerial Accounting

Reference no: EM13173184

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.

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

Target: 11,538,462 lollipops should be sold

Reference no: EM13173184

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