INSTRUCTIONS FOR MILESTONE 1 (Due Week 2)

IMPORTANT NOTE:

Make sure to completely review the Rubric for Milestone 1

Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7)

ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs):

GENERAL

You plan to open a pet services business that will offer dog grooming, day care and boarding

COMPANY PROFILE TAB

Determine a company name.Be creative (e.g. "Inspiring Dog Care")

Pick a location (e.g. "Chicago")

Define your company's vision and mission for how your business will add value to the community

COST CLASSIFICATION

Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs)

Fixed & Variable cost designation is provided

VARIABLE & FIXED COSTS

Determine your per unit cost per dog for grooming, day care and boarding

OPERATIONAL & COST INFORMATION:

For simplicity, base all calculations using 30 days in each month

OPERATIONAL DATA

Grooming:

The Groomer can groom 5 dogs a day, 5 days a week

Each grooming takes 1.5 labor hours

Day Care:

The Day Care can house 10 large dogs and 12 small dogs daily.

Day Care is offered 6 days a week

Boarding:

There are 12 kennels (single dog only).

Boarding (kennel services) is offered every day

Facilities:

The Grooming facility is 200 square feet

The Boarding facility is 2,500 square feet

The Day Care facility is 1,500 square feet

General:

Loan for start-up costs - monthly payment of $420;in effect immediately; limited cash and loan funding - used angel investors

Modest monthly draw of $600 a month for first year;should be divided evenly amoung the services (grooming, day care, boarding)

SALARY & HIRING DATA

Groomer (Allison) - $12.00 an hour, 40 hours a week

Day Care Attendant (Beverly) - $9.00 per hour, based on need

Receptionist (Cathie) - $8.50 per hour, 30 hours a week

Kennel Attendant (Ben) - $11.50 per hour, based on need

OTHER COST DATA

Grooming:

Dog Grooming Arm - $300.

Grooming Table - $900

Grooming Tub - $2,800

Clippers - $136.99; can be used for 100 grooms

Shampoo - $103.96 per 5-gallon pail; can be used for 100 grooms

Salon Tuff Capri Mobile Carry Cart - $90

Scissors (7 inch straight) - $194.99; used for 200 grooms

Scissors (ear and nose) - $7.49; used for 200 grooms

Day Care:

Fencing for Day Care area - $1,249

Fencing Installation - $1,000

Toys - $3.29 per 6 pack;one toy will last for two dogs in day care per day

Rubberized Flooring for Day Care - $3,800

Boarding:

12 Kennels; Depreciation is $80 per month

General:

Food & Water bowls - $3.59 per unit

Day Care - two bowls last for every 75 dogs that attend daycare

Boarding - two bowls last for every 100 dogs boarded; two bowls per kennel

Grooming - each bowl lasts for 20 grooms and you need 4 bowls at all times

Towels - $34.99 per 12 pack

Day Care - 12 towels for every 25 dogs

Boarding - 12 towels for every 40 dogs

Grooming - 2 towels for every groom per day

Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage

Rent - $650 per month;Allocate based on square footage

Utilities / Insurance - $600 per month; Allocate based on square footage

Cage Bank - $2,200 per set of 5

Dryer - $1,250

Cleaning Products

Odoban - $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water;Allocate based on square footage

Simple Green - $15.66 per gallon;Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage