Question
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
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