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Milestone One - Variable and Fixed Costs Collars Item Variable Cost/Item Item Fixed Costs High-tensile strength nylon webbing $ 4.00 Collar maker's salary (monthly) $
| Milestone One - Variable and Fixed Costs | |||||||
| Collars | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 4.00 | Collar maker's salary (monthly) | $ 2,560.00 | ||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan payment | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 3,815.00 | ||||
| Leashes | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,560.00 | ||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan payment | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 3,815.00 | ||||
| Harnesses | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,720.00 | ||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 3,975.00 | ||||
| Milestone Two - Contribution Margin Analysis | |||||||
| COLLARS | LEASHES | HARNESSES | |||||
| Sales Price per Unit | $ 20.00 | $ 22.00 | $ 25.00 | ||||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||||
| Milestone Two - Break-Even Analysis | |||||||
| COLLARS | LEASHES | HARNESSES | |||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | ||||
| Fixed Costs | $ 3,815 | $ 3,815 | $ 3,975 | ||||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||||
| Break-Even Units (round up) | - | - | - | ||||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | ||||
| Break-Even Units (round up) | - | - | - | ||||
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Financial Accounting Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
1111464936, 978-1111464936
