Stacy estimates practical activity to be 1,900 units per month. Apples are purchased only twice per year, in March and in October. The other ingredients are purchased throughout each month. Inventory data regarding raw materials for July is provided below Beginning Ending Raw Material Inventory Used Inventor 7.550 k 10 k 35 k Inventory 6,325 k Brown sugar Dough 5 kg 45 kg 5 k 615 k 195 k 438 kg 8 kg Stacy is very happy with her new hires. Mike brought an apple pie to the hiring interview with Stacy to have her sample the product of his family pie recipe. Mike, beaming with pride, told Stacy that this recipe has won many awards at fall fairs over many years. Stacy tasted the pie and found it extremely sweet, having in her opinion far too much brown sugar. Over the month of July, Stacy thought she had noticed that the pies prepared by Mike were the first to sell out each day and was surprised to find that pie sales were more than 200 units higher than in June. Required (round to 2 decimal places): 1. Stacy's goal is to maintain a minimum net profit of 20% on the apple pies. Determine whether the current standard cost of the apple pie will generate the required net profit. (6 points) 2. Stacy has set a control limit of plus or minus S10 on each of the raw material inputs and $200 for direct labour, for both the individual price (rate) and usage (efficiency) variances. Calculate the raw material and direct labour variances and determine which variances should be further investigated. (6 points) 3. Based on your variance analysis above, could the variances have any connection to Mike, one of the two new hires? If so, should Mike's employment be terminated? (4 points)