A B Pet Palace MILESTONE 3 - Income Statement INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600 Good morning to you all. I hope you are enjoying this stay-in-the-house Wednesday, This past Sunday, when we were discussing the third milestone, it reads that you will be given the actual income information at the end of module 4. I said that I would wait a couple of days to give it to you. Well, here we are midway through module 5, but here is the information. The idea here is that we now imagine that some time has passed, we are now up and running, and we have some real revenue and expense information. Note that all the information is based on a 30 day month. Depending on which sales price you chose, here is the revenue information. Grooming $25 sales price: 4 grooms per day $30 sales price: 3 grooms per day $35 sales price: 2 grooms per day Day Care: 518 sales price: 22 dogs per day $20 sales price: 12 dogs per day $25 sales price: 9 dogs per day Kennel $25 sales price: 12 dogs per day $28 sales price: 9 dogs per day $30 sales price 6 dogs per day With this information you should be able to incorporate your prior information from the earlier two milestones to complete the two financial statements Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit Expenses G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses 1,200 100 120 83 650 420 600 Net Income / Loss I * Cost of Goods Sold = Cost of Services There is no finished ends inventory to maintain Instructions - Milestone 2 contribution Margin Analysis Pet Palace MILESTONE 3 - Variance Analysis INSTRUCTIONS: Prepare the variances and identify whether they are favorable or unfavorable. The below website will provide further assistance with variances: http://accounting-simplified.com/management/variance-analysis/material/price.html DATA FOR VARIANCE ANALYSIS: Standard Rate 12.00 Actual Rate Grooming Labor Grooming Materials Standard Hours / Qty 150 $ 1,000 $ Actual Hours / Qty 180 1,200 $ $ 11.50 3.00 2.00 Variance Favorable/ Unfavorable Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate Contribution Margin Analysis Break-Even Analysis instructions - Milestone 3 Cos Schedule DATA FOR VARIANCE ANALYSIS: Standard Hours / Qty 150 1,000 Standard Rate 12.00 2.00 Actual Hours / Qty 180 Grooming Labor Grooming Materials Actual Rate 11.50 3.00 $ $ S $ 1,200 Favorable/ Unfavorable Variance Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) Actual Hours Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) Standard Price Direct Materials Price Variance (Actual Price - Standard Price) Actual Quantity