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Question - DRG Bakery is planning to produce 100 cookies for Valentine's Day and sell them for $1.40 each. The dough costs $5 per pound to make and they estimate that 10 cookies can be made with every pound of dough. DRG pays $50 per month for the use of a commercial-grade oven in a larger bakery. Please prepare budgeted income statement for DRG.
At the end of the holiday, DRG Bakery found that it had produced 90 cookies. The ingredients had cost $36 and they use 12 pounds of dough. The bakery earned total revenue of $148.50 from the cookies. Please create n (actual) income statement for DRG.
What is driving the difference between the budgeted income and the actual income?
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