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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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