Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit analysis in your defense.

What is the cost volume analysis?

DAY CARE BOARDING GROOMING

Sales Price per Unit $ 18.00 $25.00 $25.00

Variable Cost per Unit $ 4.65 $7.35 $9.97

Contribution Margin $$13.35 $17.65 $15.03

DAY CARE BOARDING GROOMING

Sales Price $18.00 $25.00 $25.00

Fixed Costs $858 $1,379 $2,368

Contribution Margin $ 13.35 $17.65 $15.03

Break-even Units 65.00 79.00 158.00

Target Profit $417.00 $583.00 $1,000.00

Break-even Units 96.00 112.00 225.00

Target Profit $667.00 $909.00 $1,500.00

Break-even Units 115.00 130.00 258.00