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: Flexible Budget Actual S 240,000 $240,000 Sales (8,000 pools) Variable expenses: Variable cost of goods sold 94,000 112,470 10,000 104,000 122,470 136,000 117,530 10,000 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative 55, 000 55,000 70,000 125,000 125,000 $ 11, 000 (7, 470) 70,000 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