Reference no: EM131565243

Question -

RYT Assignment

• RYT (aka Rot Your Teeth) Candy Company sells lollipops.
• Last year the company sold 10,000,000 lollipops for $1,000,000.
• The Variable Costs were $650,000 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 PRICE . DL TIME, DM PRICE and  DM QUANTITY variances and provide explanations regarding possible cause of the variances to the Board of Directors.

DM: Cost $1.50 per pound , 220,000 pounds used

DL:   Cost $12 per hour, 16000 labor hours used.