. Cost of spayeuter and transportation per dog rescued: $60 Cost of the kennel and related equipment: $400,000 Useful life of the kennel and related equipment: 20 years MR uses straight-line depreciation Salvage value of the kennel and related equipment: $0 MR has three full-time employees: an executive director who earns $40,000 per year, an evaluator/trainer who earns $30,000 per year, and a kennel manager who earns $25,000. Fringe benefits are equal to 25 percent of each employee's annual salary. MR expects to place all the dogs that it takes into the program by the last day of the fiscal year. It charges an adoption fee of $225 per dog. Experience has shown that 15 percent of the people elect to make an additional donation to MR at the time of adoption. Historically, these extra donations have averaged $175. In addition, MR has an active fundraising program and expects to raise $40,000 in donations during the fiscal year. 3-23. The executive director of Mutt Rescue (MR) animal shelter has asked you to prepare an annual budget for the coming fiscal year as well as a flexible budget based on a 5 percent increase in the number of dogs taken into MR's shelter during the year. She has given you the following guidelines: Number of dogs rescued and placed by MR: 800 Average length of stay for a dog in the shelter: 12 days Daily cost of feeding one dog: $1.10 Number of veterinary visits per dog on average: 1.2 Cost per veterinary visit: $45 $ $ Inputs Number of rescues & placements 800 Average length of stay (days) 12 Daily feeding cost 1.10 Number of vet visits 1.2 Cost per vet visit $ 45.00 Spayeuter cost per dog $ 60.00 Kennel & related Equipment $ 400,000 Useful life of equipment (years) 20 Adoption fee $225 Fringe benefits (% of salaries) 25% Extra Contributions (% of adoptio. 15% Average additional donation Average annual fundraising Flexible percentage ED Salary Evaluator/trainer Kennel Manager Base Budget Flexible Budget MUTT RESCUE OPERATING BUDGET Revenue Adoption Fee Additional Contributions Fund Raising Total Revenue $ 180,000 $ 180,000 0 0 0 0 $ 180,000 $ 180,000 #dogs * fee #dogs * % placed * % extra donation Fixed $ Expenses Salaries Benefits Base Vet expenses Spay Neuter & Transport Food Depreciation Total Expenses $ 0 0 43,200 43,200 48,000 48,000 10,560 10,560 20.000 20,000 $ 121,760 $ 121,760 Sum of salaries - all fixed Benefit % * salaries #dogs * visits * fee #dogs * spay fee & transport cost # dogs * days * cost of food per day Cost of kennel & equipment/life - fixed Profit/(Loss) $ 58.240 $ 58.240