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Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant.
Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below FlexibleActual Sales (15,eee pools) Variable expenses: $ 675,e09 5 675,e0e Variable cost of goods sold 435,088 461,890 28,888 26,e Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 455,e80 481,898 22e,880193.110 13e,eee 13,880 84,000 84,80e 214,e08 214,8e s 6,eee $ (28,898) 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 reviewin goods sold. She has been provided with the following standard cost per swimming pool g the plant's income statement, Ms. Dunn has concluded that the major problem les in the variable cost of Step by Step Solution
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