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: - Collars - With pricing at $20 per collar, you can expect to sell 30 collars per day. - With pricing at $24 per collar, you can expect to sell 25 collars per day. - With pricing at $28 per collar, you can expect to sell 20 collars per day - Leashes With pricing at $22 per leash, you can expect to sell 28 leashes per day. With pricing at $26 per leash, you can expect to sell 23 leashes per day. With pricing at $30 per leash, you can expect to sell 18 leashes per day. - Harnesses With pricing at $25 per harness, you can expect to sell 25 harnesses per day. With pricing at $30 per harness, you can expect to sell 22 harnesses per day. o 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: - Collars o Break-even $300 target profit each month o $500 target profit each month - Leashes o Break-even o $400 target profit each month o $600 target profit each month - Harnesses Break-even - $500 target profit each month - \$650 target profit each month Remember that all break-even and target points must be in whole units (we cannot sell a partial unit). Round up when calculating partial units to ensure costs are covered. Excel tip - use ROUNDUP function ACC202 - Managerial Accounting 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): GENER. Use data from Milestone 1 in your an CONTRIBUTION MARGIN ANALYSIS Select a price for each service (grooming, day care, boardin Determine the variable cost from the Variable_Fixed tab for each servi 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 Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution Margin Milestone Two - Break-Even Analysis 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: - Collars - With pricing at $20 per collar, you can expect to sell 30 collars per day. - With pricing at $24 per collar, you can expect to sell 25 collars per day. - With pricing at $28 per collar, you can expect to sell 20 collars per day - Leashes With pricing at $22 per leash, you can expect to sell 28 leashes per day. With pricing at $26 per leash, you can expect to sell 23 leashes per day. With pricing at $30 per leash, you can expect to sell 18 leashes per day. - Harnesses With pricing at $25 per harness, you can expect to sell 25 harnesses per day. With pricing at $30 per harness, you can expect to sell 22 harnesses per day. o 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: - Collars o Break-even $300 target profit each month o $500 target profit each month - Leashes o Break-even o $400 target profit each month o $600 target profit each month - Harnesses Break-even - $500 target profit each month - \$650 target profit each month Remember that all break-even and target points must be in whole units (we cannot sell a partial unit). Round up when calculating partial units to ensure costs are covered. Excel tip - use ROUNDUP function ACC202 - Managerial Accounting 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): GENER. Use data from Milestone 1 in your an CONTRIBUTION MARGIN ANALYSIS Select a price for each service (grooming, day care, boardin Determine the variable cost from the Variable_Fixed tab for each servi 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 Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution Margin Milestone Two - Break-Even Analysis