Milestone Two: Market Research Data You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell: 0 Collars 0 With pricing at $20 per collar, you can expect to sell 30 collars per day. 0 With pricing at $24 per collar, you can expect to sell 25 collars per day. 0 With pricing at $28 per collar, you can expect to sell 20 collars per day 0 Leashes 0 With pricing at $22 per leash, you can expect to sell 28 leashes per day. 0 With pricing at $26 per leash, you can expect to sell 23 leashes per day. 0 With pricing at $30 per leash, you can expect to sell 18 leashes per day. 0 Harnesses 0 With pricing at $25 per harness, you can expect to sell 25 harnesses per day. 0 With pricing at $30 per harness, you can expect to sell 22 harnesses per clay. 0 With pricing at $35 per harness, you can expect to sell 20 harnesses per day. Additionally, you will need to compare your break-even points for the following target profits for each area of your business to determine your prices: 0 Collars o Break-even 0 $300 target profit each month 0 3500 target profit each month 0 Leashes o Break-even 0 $400 target profit each month 0 $600 target profit each month 0 Harnesses o Break-even 0 3500 target profit each month 0 $650 target profit each month O AutoSave O OFF ACC 202 Project Workbook Mod 1 - Saved to Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri 10 A A ab General Condi Form Paste BI U A $ ~ % 9 .00 Cell K10 X V fx B C D E F G H K Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit S 20.00 $ 22.00 S 25.00 Variable Cost per Unit (9.10) (12.10 (14.60) Contribution Margin 10.90 9.90 10.40 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even AnalysisK29 X V fx A B C D E F G Item Variable Cost/Item Item Fixed Costs 19 High-tensile strength nylon webbing 4.00 Collar maker's salary (monthly) 2,773.33 10 Polyesterylon ribbons 3.00 Depreciation on sewing machines 55.00 11 Buckles made of cast hardware 2.00 Rent 250.00 12 Price tags 0.10 Utilities and insurance 200.00 13 Scissors, thread, and cording 400.00 14 15 16 17 19 Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,028.33 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing 6.00 Leash maker's salary (monthly) 2,560.00 28 Polyesterylon ribbons 4.50 Depreciation on sewing machines 55.00 29 Buckles made of cast hardware 1.50 Rent 250.00 30 Price tags 0.10 Utilities and insurance 200.00 31 Scissors, thread, and cording 400.00 32 Loan payment 188.33 33 Salary to self 166.67 34 35 36 38 Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,028.33 ######## 39 41 42 Harnesses 44 Item Variable Cost/Item tem Fixed Costs 46 High-tensile strength nylon webbing 6.00 Harness maker's salary 2,720.00 47 Polyester/ nylon ribbons 4.50 Depreciation on sewing machines 55.00 48 Buckles made of cast hardware 4.00 Rent 250.00 49 Price tags 0.10 Utilities and insurance 200.00 50 Scissors, thread, and cording 400.00 51 Loan 183.33 Salary to self 166.67 54 Cost Classification Variable and Fixed Costs Contribution Margin Analysis BFormat K29 fx B C D E F G H 19 Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,028.33 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing 6.00 Leash maker's salary (monthly) 2,560.00 28 Polyesterylon ribbons 4.50 Depreciation on sewing machines 55.00 29 Buckles made of cast hardware 1.50 Rent 250.00 30 Price tags 0.10 Utilities and insurance 200.00 400.00 31 Scissors, thread, and cording 32 Loan payment 188.33 33 Salary to self 166.67 34 35 36 U. E Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,028.33 ##### ### 38 39 42 Harnesses 44 Item Variable Cost/Item Item Fixed Costs 2,720.00 46 High-tensile strength nylon webbing 6.00 Harness maker's salary 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 $ 4,201.67A B C D E F G H 2 Milestone Two - Break-Even Analysis 3 COLLARS LEASHES HARNESSES Sales Price S 20.00 22.00 S 25.00 8 9 Fixed Costs S 4,028 S 4,028 S 10 11 Contribution Margin S 10.90 $ 9.90 S 10.40 12 13 Break-Even Units (round up) 14 16 17 Target Profit 300.00 S 400.00 500.00 18 19 Break-Even Units (round up) 20 22 23 Target Profit 500.00 S 600.00 650.00 24 25 Break-Even Units (round up) 26 28 29