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

With pricing at $20 per collar, you can expect to sell 30 collars per day.

With pricing at $24 per collar, you can expect to sell 25 collars per day.

With pricing at $28 per collar, you can expect to sell 20 collars per day

Leashes

With pricing at $22 per leash, you can expect to sell 28 leashes per day.

With pricing at $26 per leash, you can expect to sell 23 leashes per day.

With pricing at $30 per leash, you can expect to sell 18 leashes per day.

Harnesses

With pricing at $25 per harness, you can expect to sell 25 harnesses per day.

With pricing at $30 per harness, you can expect to sell 22 harnesses per day.

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

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

Apparently, there are some minor errors also at the beginning.

Milestone One - Variable and Fixed Costs Leashes Total Variable Costs per Leash $8.60 Total Fixed Costs $4,028.33 Harnesses \begin{tabular}{llc} Item & \multicolumn{2}{c}{ Variable Cost/Item } \\ \hline High-tensile strength nylon webbing & $ & 4.00 \\ Polyesterylon ribbons & $ & 3.00 \\ Buckles made of cast hardware & $ & 4.00 \\ Price tags & $ & 0.10 \end{tabular} \begin{tabular}{lrr} Item & \multicolumn{2}{c}{ Fixed Costs } \\ \hline Harness maker's salary & $ & 2,946.67 \\ Depreciation on sewing machines & $ & 55.00 \\ Rent & $ & 250.00 \\ Utilities and insurance & $ & 200.00 \\ Scissors, thread, and cording & $ & 400.00 \\ Loan & $ & 183.33 \\ Salary to self & $ & 166.67 \end{tabular} Total Variable Costs per Harness $11.10 Total Fixed Costs $4,201.67 Milestone Two - Contribution Margin Analysis Sales Price per Unit Variable Cost per Unit Contribution Margin \begin{tabular}{rr} \multicolumn{2}{c}{ COLLARS } \\ \hline$ & 28.00 \\ 9.10 \\ \hline$ & 18.90 \\ \hline \end{tabular} LEASHES HARNESSES \begin{tabular}{lr} \hline$ & 30.00 \\ 8.60 \\ \hline$ & 21.40 \\ \hline \end{tabular} Milestone Two - Break-Even Analysis