Answer Part 1 ONLY, IN ACCOUNTING FORMAT PLEASE:

ASSIGNMENTS BUDGETING RYL (aka RotYourTeeth) Candy Company sells lollipops Last year the company sold 10,000,000 lollipops for $1,000,000 The Variable Costs were $350,000 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 1150 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