Sales Price per unit, Variable cost per unit, and contribution Margin

noent Callof Size v 2 - -= 0' " Opt Arrange ( ) BI U~ ab X X A Paste LA Paragraph Columns bc =+ 0' 8 pt A D A ~ Aa A A ge Setup Paragraph Undo Clipboard Font Sty Align Left You have conducted some market research for style and size of products you want to use to laund your business, The market research has indicated the following sales price ranges will be optimal your area depending on style of products you choose to sell: Milestone Two - Contribution Margin Analysis Collars o With pricing at $20 per collar, you can expect to sell 30 collars per day COLLARS LEASHES HARNESSES With pricing at $24 per collar, you can expect to sell 25 collars per day o With pricing at $28 per collar, you can expect to sell 20 collars per day Sales Price per Unit Variable Cost per Unit Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day Contribution Margin With pricing at $26 per leash, you can expect to sell 23 leashes per day. o With pricing at 530 per leash, you can expect to sell 18 leashes per day . Harnesses o With pricing at 525 per harness, you can expect to sell 25 harnesses per day With pricing at 530 per harness, you can expect to sell 22 harnesses per day Milestone One - Variable and Fixed Costs 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 Collars each area of your business to determine your prices: Variable Item Cost/Item Hem Fixed Costs . Collars High-tensile strength nylon S o Break-even webbing 4.00 Collar maker's salary (monthly) 2,773.33 $300 target profit each month 5500 target profit each month Polyester/ nylon ribbons S 3.00 Depreciation on sewing machines 165.00 Buckles made of cast hardware Rent O Leashes 2.00 250.00 o Break-even S $400 target profit each month Price tags 010 Utilities and insurance 250.00 5600 target profit each month Scissors, thread, and cording 400.00 S Harnesses Loan payment 183.33 o Break-even $500 target profit each month Salary to self 166.66 o $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 Total Variable Costs per Collar S 9.10 Total Fixed Costs 4,188.32 ROUNDUP function