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RYT Assignment RYT (aka Rot Your Teeth) Candy Company sells lollipops. Last year the company sold 10,000,000 lollipops for $1,000,000. The Variable Costs were $650,000

RYT Assignment

RYT (aka Rot Your Teeth) Candy Company sells lollipops.

Last year the company sold 10,000,000 lollipops for $1,000,000.

The Variable Costs were $650,000 and the Net Profits were $100,000

Administration has directed management to double profits in the next year.

Part 1:Determine the Number of lollipops that must be sold to reach this target.

Part 2:Determine the DL and DM budget needed to reach this target.

DM:Cost $1 per pound

Each unit requires 1/50 of a pound

DL: Labor costs are $10 per hour

Each unit requires .0015 labor hours

Part 3:Determine the DL PRICE . DL TIME, DM PRICE and DM QUANTITY variances and provide explanations regarding possible cause of the variances to the Board of Directors.

DM: Cost $1.50 per pound ,220,000 pounds used

DL:Cost $12 per hour, 16000 labor hours used

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