Cotton Candy Lollipop: BRL 14.00. Chewing gum lollipop: BRL 15.00. Sundae lollipop: BRL 22.00.

The production capacity of the current unit is 400 lollipops a day, but the company has only produced 50 lollipops a day due to customer demand, of which 50% are represented by cotton candy lollipops, 30% by bubble gum lollipops, and 20% by sundae lollipops.

2) Considering that direct materials are the only variable costs, plus 5% shipping and sales price taxes (6%), Ms. Ana wants to calculate a minimum sales target for each product to ensure she makes a monthly profit of BRL 15,000.00. What is the best product for the company, considering the current selling price? Would you take any product out of the production line? Explain your reasoning using the managerial Income statement to prove your result. (1 pt)

Production: Cottom candy lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 1 R$ 4.49 R$ 4.49 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drp 2 R$ 0.45 R$ 0.90 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 22.69 Cost per lollipop R$ 4.54 Production: Bubble gum lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 0.8 R$ 4.49 R$ 3.59 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drop 2 R$ 0.45 R$ 0.90 Bubble gum Un 5 R$ 0.50 R$ 2.50 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 24.29 Cost per lollipop R$ 4.86 Production: Sundae lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 0.8 R$ 4.49 R$ 3.59 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drop 2 R$ 0.45 R$ 0.90 Chocolate g 500 R$ 0.01 R$ 5.00 Vanilla g 300 R$ 0.03 R$ 9.00 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 35.79 Cost per lollipop R$ 7.16 Production: Cottom candy lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 1 R$ 4.49 R$ 4.49 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drp 2 R$ 0.45 R$ 0.90 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 22.69 Cost per lollipop R$ 4.54 Production: Bubble gum lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 0.8 R$ 4.49 R$ 3.59 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drop 2 R$ 0.45 R$ 0.90 Bubble gum Un 5 R$ 0.50 R$ 2.50 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 24.29 Cost per lollipop R$ 4.86 Production: Sundae lollipop Quantities: 5 Time to prepare 20 minutes Supplier Supermarket Adventures Date: 11/10/2011 Ingredients Units Qty Unit Price (R$/kg) Total Price Sugar Kg 0.8 R$ 4.49 R$ 3.59 Corn Syrup ml 40 R$ 0.05 R$ 2.00 Water ml 40 R$ 0.03 R$ 1.20 Salt g 2 R$ 0.30 R$ 0.60 Raspberry Syrup ml 5 R$ 0.60 R$ 3.00 Pink coloring Drop 2 R$ 0.45 R$ 0.90 Chocolate g 500 R$ 0.01 R$ 5.00 Vanilla g 300 R$ 0.03 R$ 9.00 Popsicle stick Un 5 R$ 0.50 R$ 2.50 Packing bag Un 5 R$ 1.00 R$ 5.00 Ribbon/Packing Un 5 R$ 0.60 R$ 3.00 Total Cost R$ 35.79 Cost per lollipop R$ 7.16