1. Target Profits: Identify your break-even points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.

D60 Jx F G H 1 J K L M N P Q R E S T B C D 29 Buckles made of cast hardware 1.50 Rent 250.00 200.00 30 Price tags 0.10 Utilities and insurance 31 Scissors, thread, and cording 32 Loan payment 183.33 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 Item Fixed Costs 46 High-tensile strength nylon webbing 6.00 Harness maker's salary 2,946.60 47 Polyesterylon 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 Loar 183.33 52 Salary to self 166.67 53 54 55 57 Total Variable Costs per Harness 14.60 Total Fixed Costs 4,201.60 58 60 61 62 63 64G22 fx B C D E F G H I J K L M N 0 P Q R S T U V Milestone Two - Break-Even Analysis UPWN COLLARS LEASHES HARNESSES Sales Price $ 0.00 S 22.00 5.00 6 00 Fixed Costs $ 327 S 277 260 11 Contribution Margin 10.90 S 9.90 S 10.40 13 Break-Even Units (round up) 30.00 28.00 25.00 14 16 17 Target Profit 300.00 400.00 $ 500.00 18 19 Break-Even Units (round up) 58.00 69.00 74.00 20 22 23 Target Profit 500.00 600.00 650.00 24 25 Break-Even Units (round up) 76.00 89.00 88.00 26 28 29 32F24 fx A B C D E F G H I J K L M N 0 P Q R S T N N Milestone Three - Statement of Cost of Goods Sold 6 Beginning Work in Process Inventory $ Direct Materials: Materials: Beginning Add: Purchases for month of January $ 20,000 11 Materials available for use 20,000 12 Deduct: Ending materials 4,000 14 Materials Used 16,000 15 Direct Labor 8,493 16 Overhead 3,765 18 Total Costs 28,258 19 20 Deduct: Ending Work in Process Inventory 21 22 Cost of Goods Sold 28,258 23 24 25 26 27 28 29fx 2300 A B C D E F G H I J K L M N 0 P Q R S T U N N Milestone Three - Income Statement Revenue : Collars S 13,200 Leashes 12,320 Harnesses 12,500 10 Total Revenue: 38,020 11 Cost of goods sold 28,258 12 Gross profit 9,762 13 14 Expenses 15 General and administrative salaries S 1,950 16 Office supplies 200 17 Other business equipment 150 18 19 Total Expenses 2,300.00 20 21 Net Income/Loss 7,462.00 22 23 24 26 27E27 Jx Unfavorable A B C D E F G H I J K L M N 0 P Q R S T U Milestone Three - Variance Analysis W N Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard (Standard) Hours/Qty Rate Hours/Qty Rate 0 00 Labor 160 $ 16.00 180 $ 16.50 10 11 Materials 660 | $ 9.10 720 $ 10.00 12 13 14 15 Variances for Collar Sales Favorable/ 16 Variance Unfavorable 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate 320.00 Unfavorable 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours $ 90.00 Unfavorable 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price 546.00 Unfavorable 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity S 648.00 Unfavorable 28 29 30 31 32 33 34