please review completed work and assist with contribution margin analysis & break even analysis

You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550, it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. . Salary and Hiring Data One collar maker, who will be paid $16.00 per hour and work 40 hours per week One leash maker, who will be paid $16.00 per hour and work 40 hours per week One harness maker, who will be paid $17.00 per hour and work 40 hours per week One receptionist, who will be paid $15.00 per hour and work 30 hours per week . . . @ Other Costs Rent: $750 per month; allocate based on square footage High-tensile strength nylon webbing-$12 per yard of webbing 3 collars per yard of webbing 2 Peashes per yard of webbing a 2 harnesses per yard of webbing Polyesterylon ribbons-$9 per yard of ribbon 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Buckles made of cast hardware-$0.50 per buckle 4 buckles used per collar 3 buckles used per leash 8 buckles used per harness 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 Price tags: $250 for 2,500 ($0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month Salary drawn of $500 per month a . . . 16 D G H 5 INSTRUCTIONS: 6 Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. 7 The Fixed and Variable cost classifications have been provided for you. 8 Direct Direct 9 Item/Cost Material Labor Overhead Period Costs Fixed Variable 12 Salary - Collar maker 13 Salary - Leash maker 14 Salary - Harness maker 15 Salary - Receptionist 16 High-tensile strength nylon webbing 17 Polyesterylon ribbons 18 Buckles made of cast hardware 19 Depreciation on sewing machines 20 Rent x X X X X 21 Utilities and insurance 22 Scissors, thread, and cording 23 Price tags 24 Office supplies 25 Oter business equipment 26 Loan payment 27 Salary to self X X X X X:X 28 29 Cost Classification Vanable and Fived Costa 2.00 5 Collars 7 Item ariable Cost/Item 3 High-tensile strength nylon webb $ 4.00 10 Poliesterinvlon ribbons $ 3.00 11 Buokles made of cast hardware $ 12 Price tags $ 0.10 18 14 15 16 17 19 Total Variable Costs per C$ 9.10 20 Item Fixed Costs Collar maker's salary (monthly) $ 2/773 63 Depreciation on sewing machine: $ 55.00 Rent $ 250.00 Utilities and insurance $ 200.00 Scissors, thread, and cording $ 400.00 Loan payment 55 186.58 Salary to sell $ 166.67 Total Fixed Costs $ 4.492.78 22 23 Leashes 25 Item ariable Cost/ltem 27 High-tensile strength nylon webb $ 6.00 28 Polyesterylon ribbons $ 4.50 29 Buckles made of cast hardware $ 1.50 30 Price tags 0.10 31 32 33 34 35 36 Item Fixed Costs Leash maker's salary monthly $ 2.560.00 Depreciation on sewing machine: $ 55.00 Rent $ 250.00 Utilities and insurance $ 200,00 Scissors, thread, and cording $ 400.00 Loan payment $ 183.33 Salary to self $ 166.67 Total Variable Costs per L$ 38 39 12.10 Total Fixed Costs $ 4.492.78 49 Price tags 41 42 Harnesses 44 Item ariable Cost/item 46 High-tensile suength nylon webb $ 6.00 47 Polyesterylon ribbons $ 4.50 48 Buokles made of cast hardware 4.00 3 50 51 52 53 54 55 57 Total Variable Costs per H 14.60 58 0.10 Item Harness maker's salary Depreciation on sewing machine Rent Utilities and insurance Scissors, thread and cording Loan Salary to sell Fixed Costs 21720.00 $5.00 250.00 200.00 400.00 180.00 166.67 Total Fixed Costs 4.65278 B D 1 E F G 2. 3 Milestone Two - Contribution Margin Analysis 4 5 6 COLLARS LEASHES HARNESSES 8 Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin 12 14 15 D E LL 1 G 2. Milestone Two - Break-Even Analysis 3 57 4 5 COLLARS LEASHES HARNESSES 7 Sales Price $ $ $ $ 00 Fixed Costs $ $ $ 9 10 11 $ Contribution Margin $ $ 12 13 14 Break-Even Units (round up) Target Profit $ 300.00 $ 400.00 $ 500.00 16 17 18 19 20 Break-Even Units (round up) 22 Target Profit 23 24 $ 500.00 $ 600.00 $ 650.00 25 Break-Even Units (round up) 26 28 29