Lookin' Dog Gone Good Dog-Grooming 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 BOARDING GROOMING DAY CARE $ $ Sales Price $ $ $ $ Fixed Costs $ $ s Contribution Margin Break-even Units (round up) $ 417.00 $ 583.00 $ 1,000.00 Target Profit Break-even Units (round up) $ 667.00 $ 909.00 $ Target Profit 1,500.00 5 Break-even Units (round up) 357.14 Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs Shampoo Clipper(s) Bowls Towels Scissors 104 1.37 0.72 5.83 101 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 2,080.01 30.95 20.00 28.57 3.95 2.08 2.36 200.00 2,367.91 Total Variable Costs $ 9.97 $ 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 Item Item $ Day care attendant Toys Bowls Towels Variable Costs $ 2.88 0.27 0.10 1.40 Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs Fixed Costs 232.14 150.00 214.29 29.64 15.59 16.78 200.00 Total Variable Costs $ 4.74 $ 858.44 Item Fixed Costs $ Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Variable Costs Item Kennel attendant $ 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 $ Total Fixed Costs 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 7.35 $ 1,378.97 Instructions Instructions - Milestone 1 Company Profile Cost Classification Variable Fixed Instructions Mil A B Lookin' Dog Gone Good Dog-Grooming 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 have 22 dogs 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 dog per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day. 2. With pricing at $28 per dog per day, you can expect to have 10 dogs 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 dog per day, you can expect to have 5 dogs per day. 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day. 3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day. DAY CARE BOARDING GROOMING $ Sales Price per Unit Variable Cost per Unit Contribution Margin $
