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. verVIew The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the
. verVIew The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the relevant nancial calcula'ons to determine appropriate costing solutions. In this milestone assignment, you will conduct a break-even analysis to determine your target prots and the selling price you plan to use to achieve these prots for each product. Pmmm Use information from Milestone One and the provided prot analysis. Complete the \"Contribution Margin Analysis" and \"Break-Even Analysis\" tabs in the to conduct a cost-volume that you used for completing the Milestone One assignment. Specically, 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-prot lCVP} analysis to determine your break-even points for achieving your target prots 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 prots for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. 1l'ou 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 prioe ranges will be optimal for your area depending on style of products you choose to sell: 0 Collars :3 With pricing at 52D per collar, you can expect to sell 3D collars per day. :3 With pricing at $24 per collar, you can expect to sell 25 collars per day. :3 With pricing at $28 per collar, you can expect to sell 2D collars per day 0 Leashes :3 With pricing at $22 per leash, you can expect to sell 23 leashes per day. :3 With pricing at $26 per leash, you can expect to sell 23 leashes per day. a With pricing at 53D per leash, you can expect to sell 13 leashes per day. .- Harnesses :3 With pricing at $25 per harness, you can expect to sell 25 harnesses per day. a With pricing at 53D per harness, you can expect to sell 22 harnesses per day. o With pricing at $35 per harness, you can expect to sell 2D harnesses per day. Additionally, you will need to compare your break-eyen points for the following target prots for each area of your business to determine your prices: .- Collars o Break-even o SSDD target prot each month o SSDD target prot each month 0 Leashes o Break-even o $4DD target prot each month :3 SEDD target prot each month or Harnesses o Break-even o SSDD target prot each month :3 SEED target prot each month Remember that all break-eyen and target points must be in whole units {we cannot sell a partial unit]. Round up when calculating partial units to ensure costs are coyered. Excel tip use RDUNDUPfunction \fMilestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price |:! S 5 Fixed Costs 5 5 5 Contribution Margin S 5 5 BreakEven Units [round up} _ _ Target Profit 5 300.00 S 4-00.00 5 500.00 BreakEven Units [round up} _ _ Target Profit 5 500.00 5 600.00 5 650.00 BreakEven Units [round up} _ _
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