Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the first and last photos should help, the last photo is variable costs. the second photo that is blank is what I need help with,
the first and last photos should help, the last photo is variable costs. the second photo that is blank is what I need help with, if you need more info please let me know or comment and I'll reply when I can, I appreciate the help
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 o With pricing at $20 per collar, you can expect to sell 30 collars per day. o 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 Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day. o With pricing at $26 per leash, you can expect to sell 23 leashes per day. o With pricing at $30 per leash, you can expect to sell 18 leashes per day. Harnesses o With pricing at $25 per harness, you can expect to sell 25 harnesses per day. o 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 o Leashes o Break-even o $400 target profit each month o $600 target profit each month Harnesses o Break-even o $500 target profit each month o $650 target profit each month 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 2 Milestone One - Variable and Fixed Costs - 3 4 5 Collars 7 Item ariable Cost/Item 9 High-tensile strength nylon webbi 4.00 10 Polyesterylon ribbons $ 3.00 11 Buckles made of cast hardware $ 2.00 12 Price tags $ 0.10 13 9.10 14 15 16 17 19 Total Variable Costs per Ce $9.10 20 Item Fixed Costs Collar maker's salary (monthly) $ 2,773.33 Depreciation on sewing machines $ 165.00 Rent $ 250.00 Utilities and insurance $ 200.00 Scissors, thread, and cording $ 400.00 Loan payment $ 183.33 Salary to self $ 166.67 $ 4,138.33 As the salary for collar makers is already given as $2733.33 / month, you would then divide that by the number of total hours worked per month which is 16 so the math for that would be 2773.33/16 - 173.33 hours. Also used the Control + to add the total up faster as a quick tool for the sum (used on the leashed and harnessess). Total Fixed Costs $4,138.33 7.5HHQBHEEP:i 2888888:="="$F$Pm588%BF Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Fixed Costs $2,773.33 $165.00 $250.00 $200.00 $400.00 $183.33 $166.67 $4,138.33 Salary of the leash maker = 16' 173.33 hours = $2773.33/month 22 23 Leashes 25 Item ariable Costiltem 27 High-tensile strength nylon webbi $6.00 28 Polyesterylon ribbons $4.50 29 Buckles made of cast hardware $1.50 30 Price tags $0.10 31 $12.10 32 33 34 35 36 38 Total Variable Costs per Le $12.10 39 41 42 Harnesses 44 Item ariable Cost/Item 46 High-tensile strength nylon webbii $6.00 47 Polyesterylon ribbons $4.50 48 Buckles made of cast hardware $4.00 49 Price tags $0.10 50 $14.60 51 52 53 54 Total Fixed Costs $4,138 This assumption is taken that the leash and harness maker worked for the same amount of hours as the coller makers so the multiplication would be applied here but with different dollar amounts (also with the exception that the harness maker works for $17.00 an hour instead of $16.00 unlike the collar and leash makers). Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Fixed Costs $2,946.66 $165.00 $250.00 $200.00 $400.00 $183.33 $166.67 $4,311.66 Salary of harness maker = 17' 173.33 = $2946.66/month Total Variable Costs per H $14.60 Total Fixed Costs $4,311.66 57 58 60 The information given and mathematically proven here would also show that the hours worked per week, by the makers, is not an exact 40 hours because 40 hours' 4 weeks would be 160 hours per month so they're working extra since the hours total to 173.33. 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 o With pricing at $20 per collar, you can expect to sell 30 collars per day. o 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 Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day. o With pricing at $26 per leash, you can expect to sell 23 leashes per day. o With pricing at $30 per leash, you can expect to sell 18 leashes per day. Harnesses o With pricing at $25 per harness, you can expect to sell 25 harnesses per day. o 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 o Leashes o Break-even o $400 target profit each month o $600 target profit each month Harnesses o Break-even o $500 target profit each month o $650 target profit each month 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 2 Milestone One - Variable and Fixed Costs - 3 4 5 Collars 7 Item ariable Cost/Item 9 High-tensile strength nylon webbi 4.00 10 Polyesterylon ribbons $ 3.00 11 Buckles made of cast hardware $ 2.00 12 Price tags $ 0.10 13 9.10 14 15 16 17 19 Total Variable Costs per Ce $9.10 20 Item Fixed Costs Collar maker's salary (monthly) $ 2,773.33 Depreciation on sewing machines $ 165.00 Rent $ 250.00 Utilities and insurance $ 200.00 Scissors, thread, and cording $ 400.00 Loan payment $ 183.33 Salary to self $ 166.67 $ 4,138.33 As the salary for collar makers is already given as $2733.33 / month, you would then divide that by the number of total hours worked per month which is 16 so the math for that would be 2773.33/16 - 173.33 hours. Also used the Control + to add the total up faster as a quick tool for the sum (used on the leashed and harnessess). Total Fixed Costs $4,138.33 7.5HHQBHEEP:i 2888888:="="$F$Pm588%BF Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Fixed Costs $2,773.33 $165.00 $250.00 $200.00 $400.00 $183.33 $166.67 $4,138.33 Salary of the leash maker = 16' 173.33 hours = $2773.33/month 22 23 Leashes 25 Item ariable Costiltem 27 High-tensile strength nylon webbi $6.00 28 Polyesterylon ribbons $4.50 29 Buckles made of cast hardware $1.50 30 Price tags $0.10 31 $12.10 32 33 34 35 36 38 Total Variable Costs per Le $12.10 39 41 42 Harnesses 44 Item ariable Cost/Item 46 High-tensile strength nylon webbii $6.00 47 Polyesterylon ribbons $4.50 48 Buckles made of cast hardware $4.00 49 Price tags $0.10 50 $14.60 51 52 53 54 Total Fixed Costs $4,138 This assumption is taken that the leash and harness maker worked for the same amount of hours as the coller makers so the multiplication would be applied here but with different dollar amounts (also with the exception that the harness maker works for $17.00 an hour instead of $16.00 unlike the collar and leash makers). Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Fixed Costs $2,946.66 $165.00 $250.00 $200.00 $400.00 $183.33 $166.67 $4,311.66 Salary of harness maker = 17' 173.33 = $2946.66/month Total Variable Costs per H $14.60 Total Fixed Costs $4,311.66 57 58 60 The information given and mathematically proven here would also show that the hours worked per week, by the makers, is not an exact 40 hours because 40 hours' 4 weeks would be 160 hours per month so they're working extra since the hours total to 173.33Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started