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 DAY CARE BOARDING GROOMING Sales Price 18.00 $ 25.00 25.00 Fixed Costs Contribution Margin $ 13.35 17.65 $ 15.03 Break-even Units (round up) Target Profit 417.00 583.00 1,000.00 Break-even Units (round up) Target Profit 667.00 909.00 1,500.00 Break-even Units (round up) INSTRUCTIONS: Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service. Variable Costs Item Fixed Costs Based on 5 grooms per day GROOMING Item Shampoo Clipper(s) Bowls Towels Scissors 1.04 1.37 0.72 5.83 1.01 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 2,080.00 30.95 20.00 28.57 3.95 2.08 2.36 200.00 2,367.91 Total Variable Costs $ 9.97 $ Item Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant DAY CARE Variable Costs Item Fixed Costs Day care attendant S 2.88 Rent S 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs 4.65 Total Fixed Costs S 858.44 Fixed Costs $ Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Kennel attendant S 5.62 Depreciation on kennels Bowls 0.86 Rent Towels 0.87 Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs $ 7.35 Total Fixed Costs 80.00 386.90 250.00 357 14 49.40 25.98 29.55 200.00 1,378.97 $