Question
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. INSTRUCTIONS FOR
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.
INSTRUCTIONS FOR MILESTONE 2 (Due Week 4)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 2
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 (Green Tabs):
GENERAL
Use data from Milestone 1 in your analysis
CONTRIBUTION MARGIN ANALYSIS
Select a price for each service (grooming, day care, boarding)
Determine the variable cost from the Variable_Fixed tab for each service
Calculate the contribution margin for each service based on your sales price and the variable cost for that service
BREAK-EVEN ANALYSIS
Determine the fixed cost from the Variable_Fixed tab for each service
Fixed & Variable cost designation is provided
Calculate the break-even units (round up) for each service
Calculate the break-even units (round up) for suggested target profit levels for each service
Break-even = Fixed Costs / Contribution Margin
DAY CARE BOARDING GROOMING
Sales Price $- 0 $- 0 $- 0
Fixed Costs $- 0 $- 0 $- 0
Contribution Margin $- 0 $- 0 $- 0
Break-even Units (round up) - 0 - 0 - 0
Target Profit $417.00 $583.00 $1,000.00
Break-even Units (round up) - 0 - 0 - 0
Target Profit $667.00 $909.00 $1,500.00
Break-even Units (round up) - 0 - 0 - 0
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