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.