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Collars o With pricing at $20 per collar, you can expect to sell 30 collars per day. o With pricing at $24 per collar, you

Collars

o With pricing at $20 per collar, you can expect to sell 30 collars per day.

o With pricing at $24 per collar, you can expect to sell 25 collars per day.

o With pricing at $28 per collar, you can expect to sell 20 collars per day

Leashes

o With pricing at $22 per leash, you can expect to sell 28 leashes per day.

o With pricing at $26 per leash, you can expect to sell 23 leashes per day.

o With pricing at $30 per leash, you can expect to sell 18 leashes per day.

Harnesses

o With pricing at $25 per harness, you can expect to sell 25 harnesses per day.

o With pricing at $30 per harness, you can expect to sell 22 harnesses per day.

o With pricing at $35 per harness, you can expect to sell 20 harnesses per day.

you will need to compare your break-even points for the following target profits for each area of your business to determine your prices:

Collars

o Break-even

o $300 target profit each month

o $500 target profit each month

Leashes

o Break-even

o $400 target profit each month

o $600 target profit each month

Harnesses

o Break-even

o $500 target profit each month

o $650 target profit each month

  • Contribution Margin. Determine your contribution margin per unit in the "Contribution Margin Analysis" tab.
    • Choose a sales price for each product.
    • 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.
Milestone Two - Contribution Margin Analysis
COLLARS LEASHES HARNESSES
Sales Price per Unit
Variable Cost per Unit
Contribution Margin
  • Break-Even Analysis. Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the "Break-Even Analysis" tab.
    • 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.
    • Determine break-even units for the suggested target profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
Milestone Two - Break-Even Analysis
COLLARS LEASHES HARNESSES
Sales Price $ - $ - $ -
Fixed Costs $ - $ - $ -
Contribution Margin $ - $ - $ -
Break-Even Units (round up) - - -
Target Profit $ 300.00 $ 400.00 $ 500.00
Break-Even Units (round up) - - -
Target Profit $ 500.00 $ 600.00 $ 650.00
Break-Even Units (round up) - - -

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