The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the relevant financial calculations to determine appropriate costing solutions. In this milestone assignment, you will conduct a break-even analysis to determine your target profits and the selling price you plan to use to achieve these profits for each product. Prompt Use information from Milestone One and the provided Milestone Two Market Research Data Appendix Word Document to conduct a cost-volume profit analysis. Complete the Contribution Margin Analysis and Break-Even Analysis tabs in the Project Workbook Spreadsheet that you used for completing the Milestone One assignment. Specifically, you must address the following rubric criteria: Contribution Margin. Determine your contribution margin per unit in the Contribution Margin Analysis tab. Choose a sales price for each product. Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table. Break-Even Analysis. Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the Break-Even Analysis tab. Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. Determine break-even units for the suggested target profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

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:

Sales price per unit for collars I chose is $20

Sales price per unit for leashes I chose is $22

Sales price per unit for harnesses I chose is $25

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
  • Break-even
  • $300 target profit each month
  • $500 target profit each month

• Leashes
  • Break-even
  • $400 target profit each month
  • $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

Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit$20.00 $22.00 $25.00 Variable Cost per Unit$9.10 12.10 14.60 Contribution Margin$10.90 $9.90 $23.40

Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up)

****Please kindly provide all calculations***