Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi! Select a price from below and compute the contribution margin for each service based on your selected price. Variable cost per unit come from

Hi! Select a price from below and compute the contribution margin for each service based on your selected price. Variable cost per unit come from the Variable_Fixed page

Your market research indicated the following price ranges as optimal:

1. Dog Day Care

a. With pricing at $18 per dog per day, you can expect to have 22 dogs per day.

b. With pricing at $20 per dog per day, you can expect to have 15 dogs per day.

c. With pricing at $25 per dog per day, you can expect to have 10 dogs per day.

2. Overnight boarding

a. With pricing at $25 per dog per day, you can expect to have 12 dogs per day.

b. With pricing at $28 per dog per day, you can expect to have 10 dogs per day.

c. With pricing at $35 per dog per day, you can expect to have 7 dogs per day.

3. Basic Groom

a. With pricing at $25 per groom, you can expect to do 5 grooms per day.

b. With pricing at $25 per groom, you can expect to do 4 grooms per day.

c. With pricing at $25 per groom, you can expect to do 3 grooms per day.

Variable / Fixed costs

Grooming

Total Variable Costs $9.97 Total Fixed Costs $2,367.92

Day Care

Total Variable Costs $4.75 Total Fixed Costs $859.39

Boarding

Total Variable Costs $7.36 Total Fixed Costs $1,378.99

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What is the role of IMC in corporate communication?

Answered: 1 week ago