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Mililer Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been experlencing problems as shown by its June contribution format

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Mililer Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been experlencing problems as shown by its June contribution format Income statement below Variable cost of goode sold* Varlable selling expens16,000 16,000 Contribation margin 0 152,610 72,000 72,000 Total fixed expenses Set opereting ineone (loss) 11,320 (1,390) Contalins direct materials, direct labor, and variable manufacturing overheed Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under control Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming poob Ouastity or Standard Price 3.2 pound 2.70 per pound 0.6 hours7.30 per hour 0.5 hours2.10 per hour40 8.64 4-3 0t.1 standard oos per unit Based on machine-hours During June, the plant produced 4,000 pools and incurred the following costs: 14.42 Prey Next MacBook Air 5 9

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