HOME Bark and Wag 5 Star Resort MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio INSTRUCTIONS: Select a price from the scenarios below and compute the contribution for each service based on your selected price. Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1 SCENARIO (choose one from each category: Dog Day Care 1. With pricing at $18 per dog per day, you can expect to have 22 dags per day. 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. 3. With pricing at $25 per dos per day, you can expect to have 10 does per day Overnight Boarding 1. With pricing at $25 per dor per day, you can expect to have 12 dags per day 2. With pricing at $28 per dog per day, you can expect to have 10 dags per day. 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day, Basic Groom 1. With pricing at $25 per doe per day, you can expect to have 5 does per day, 2. With pricing at $30 per dag per day, you can expect to have 4 dogs per day, 3. With pricing at $35 per dag per day, you can expect to have 3 dogs per day. DAY CARE BOARDING GROOMING 18.00 25.00 25,00 5ales Price per Unit Variable Cost per Unit Contribution Margin 13.35 15 03 Bark and Wag 5 Star Resort MILESTONE 2 - Break-Even Analysis 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 GROOMING DAY CARE 18.00 BOARDING 25.00 Sales Price $ 25.00 Fixed Costs 858 1,379 2,368 Contribution Margin 13.35 $ 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit 417.00 583.00 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit 667.00 909.00 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs): GENERAL Use data from Milestone 1 and Milestone 2 in your analysis Revenue data needed for the Income Statement will be provided at the end of Module 4 COST OF SERVICES PROVIDED SCHEDULE Use the data at the top of the schedule to complete the report INCOME STATEMENT Use the data at the top of the schedule to complete the report Use the data from your Cost of Services Provided Schedule VARIANCES Use the data at the top of the schedule to calculate the following: Variance Favorable / Unfavorable Bark and Wag 5 Star Resort MILESTONE 3 - Statement of Cost of Services INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Bark and Wag 5 Star Resort Statement of Cost of Services For the Month Ended January 31, XXXX 0 Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600 Bark and Wag 5 Star Resort Income Statement For the Month Ended January 31, XXXX $ Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan TIL:: . . Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ - Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses $ - Net Income / Loss - * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. HOME Bark and Wag 5 Star Resort MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio INSTRUCTIONS: Select a price from the scenarios below and compute the contribution for each service based on your selected price. Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1 SCENARIO (choose one from each category: Dog Day Care 1. With pricing at $18 per dog per day, you can expect to have 22 dags per day. 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. 3. With pricing at $25 per dos per day, you can expect to have 10 does per day Overnight Boarding 1. With pricing at $25 per dor per day, you can expect to have 12 dags per day 2. With pricing at $28 per dog per day, you can expect to have 10 dags per day. 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day, Basic Groom 1. With pricing at $25 per doe per day, you can expect to have 5 does per day, 2. With pricing at $30 per dag per day, you can expect to have 4 dogs per day, 3. With pricing at $35 per dag per day, you can expect to have 3 dogs per day. DAY CARE BOARDING GROOMING 18.00 25.00 25,00 5ales Price per Unit Variable Cost per Unit Contribution Margin 13.35 15 03 Bark and Wag 5 Star Resort MILESTONE 2 - Break-Even Analysis 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 GROOMING DAY CARE 18.00 BOARDING 25.00 Sales Price $ 25.00 Fixed Costs 858 1,379 2,368 Contribution Margin 13.35 $ 17.65 $ 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit 417.00 583.00 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit 667.00 909.00 1,500.00 Break-even Units (round up) 114.00 130.00 257.00 ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs): GENERAL Use data from Milestone 1 and Milestone 2 in your analysis Revenue data needed for the Income Statement will be provided at the end of Module 4 COST OF SERVICES PROVIDED SCHEDULE Use the data at the top of the schedule to complete the report INCOME STATEMENT Use the data at the top of the schedule to complete the report Use the data from your Cost of Services Provided Schedule VARIANCES Use the data at the top of the schedule to calculate the following: Variance Favorable / Unfavorable Bark and Wag 5 Star Resort MILESTONE 3 - Statement of Cost of Services INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Bark and Wag 5 Star Resort Statement of Cost of Services For the Month Ended January 31, XXXX 0 Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600 Bark and Wag 5 Star Resort Income Statement For the Month Ended January 31, XXXX $ Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan TIL:: . . Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ - Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses $ - Net Income / Loss - * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain