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Compute the contribution for each service based on your selected price. Dog Day Care With pricing at $25 per dog per day, you can expect
Compute the contribution for each service based on your selected price.
Dog Day Care With pricing at $25 per dog per day, you can expect to have 9 dogs per day.
Overnight Boarding- With pricing at $30 per dog per day, you can expect to have 6 dogs per day.
Basic Groom- With pricing at $35 per dog per day, you can expect to have 2 dogs per day.
INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ 25.00 $ 30.00 $ 35.00 Fixed Costs $ 858 $ 1,379 $ 2,368 Contribution Margin $ 20.35 $ 22.65 $ 25.03 Break-even Units (round up) Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) Target Profit $ 667.00 $ 909.00 $ 1,500.00 Break-even Units (round up)Step by Step Solution
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