ACC 202 Milestone One: Operational Costs Data Appendix You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas [500 square feet each). You have taken out a loan for startup costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data 0 One collar maker, who will be paid $16.00 per hour and work 40 hours per week a One leash maker, who will be paid $16.00 per hour and work 40 hours per week a One harness maker, who will be paid $17.00 per hour and work 40 hours per week a One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs 0 Rent: $750 per month; allocate based on square footage - Hightensile strength nylon webbing$12 per yard of webbing o 3 collars per yard of webbing o 2 leashes per yard of webbing 0 2 harnesses per yard of webbing o Polyesterylon ribbons$9 per yard of ribbon o 3 collars per yard of ribbon 0 2 leashes per yard of ribbon o 2 harnesses per yard of ribbon - Buckles made of cast hardware$0.50 per buckle o 4 buckles used per collar 0 3 buckles used per leash o 8 buckles used per harness o 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5 year life, zero salvage value) 0 Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 a Price tags: $250 for 2,500 ($0.10 each} 0 Office supplies: $2,400 or $200 per month o Other business equipment: $2,000 a Loan payment of $550 per month 0 Salary drawn of $500 per month Prompt Use information from Milestone One and the provided Milestone Two Market Research Data Appendix Word Document to conduct a cost-volume prot analysis. Complete the \"Contribution Margin Analysis" and \"Break- Even Analysis\" tabs in the mject Workbook Spreadsheet that you used for completing the Milestone One assignment. Specically, you must address the following rubric criteria: 0 Contribution Margin. Determine your contribution margin per unit in the \"Contribution Margin Analysis" tab. 0 Choose a sales price for each product. 0 Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table. 0 Break-Even Analysis. Use cost-volume-prot (CVP) analysis to determine your break-even points for achieving your target prots in the \"Break-Even Analysis\" tab. 0 Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. 0 Determine break-even units for the suggested target prots for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution MarginA B D E G H K M N Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price S s Fixed Costs S S Contribution Margin S S S Break-Even Units (round up) Target Profit S 300.00 S 400.00 500.00 Break-Even Units (round up) Target Profit S 500.00 S 600.00 S 650.00 Break-Even Units (round up)