Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as showrn by its June contribution format income statement below: Flexible Actual Budget Sales (4,000 pools) Variable expenses: $ 275,000 $275,000 Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 74,720 90,040 27,000 101, 720 117,040 173,280 157,960 27,000 68,000 93,000 68,000 93,000 161,000 161,000 $ 12,280 (3,040) Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) Contains direct materials, direct labor, and variable manufacturing overhead 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 pool