You have conducted some market research for style and size of prod ucls 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: I Collars o With pricing at $20 per collar, you can expect to sell ED collars per clay. o With pricing at $24 per collar, you can expect to sell 25 collars per clay. o With pricing at $28 per collar, you can expect to sell 20 collars per clay I Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day. o With pricing at $25 per leash, you can expect to sell 23 leashes per day. :3 With pricing at $311} per leash, you can expect to sell 18 leashes per day. I Harnesses o With pricing at $25 per harness, you can expect to sell 25 harnesses per day. :3 With pricing at $311} per harness, you can expect to sell 22 harnesses per day. o With pricing at $35 per harness, you can expect to sell 2i] harnesses per day. Additionally, you will need to compare your break-even points for the following target prots for each area of your business to determine your prices: I Collars o Breakeven o 53m) target prot each month :3 $5UD target prot each month - Leashes o Breakeven :3 $400 target prot each month o 3605' target prot each month - Harnesses o Breakeven o $5UD target prort each month o 365:! target prot 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 14Milestone One - Variable and Fixed Costs Collars Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbi $ 4.00 Collar maker's salary (monthly) 2.773.33 10 Polyesterylon ribbons 3.00 Depreciation on sewing machines 165.00 11 Buckles made of cast hardware 2.00 Rent 250.00 Price tags 0. 10 Utilities and insurance 200.00 As the salary for collar makers is already given as $2733.33 / month, you would 9.10 Scissors, thread, and cording 400.00 then divide that by the number of total hours worked per month which is 16 so Loan payment 183.33 the math for that would be 2773.33 /16 = 173.33 hours. Salary to self 166.67 4,138.33 Also used the Control + 0 to add the total up faster as a quick tool for the sum [used on the leashed and harnessess) Total Variable Costs per Co $9.10 Total Fixed Costs $4.138.33 20 22 23 Leashes 25 Item ariable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbi $6.00 Leash maker's salary (monthly) $2.773.33 28 Polyesterinylon ribbons $4.50 Depreciation on sewing machines $165.00 29 Buckles made of cast hardware $1.50 Rent $250.00 30 Price tags $0.10 Utilities and insurance $200.00 31 :12. 10 Scissors, thread, and cording $400.00 Salary of the leash maker = 16' 173.33 hours = $2773.33 / month 32 Loan paymen $183.33 33 Salary to self $166.67 34 $4,138.33 35 36 This assumption is taken that the leash and harness maker worked for the same 38 Total Variable Costs per Le $12.10 Total Fixed Costs $4.138 amount of hours as the coller makers so the multiplication would be applied here 39 but with different dollar amounts (also with the exception that the harness maker 41 works for $17.00 an hour instead of $16.00 unlike the collar and leash makers) 12 Harnesses 44 Item ariable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbi $6.00 Harness maker's salary $2.946.66 47 Polyesterylon ribbons $4.50 Depreciation on sewing machines $165.00 48 Buckles made of cast hardware $4.00 Rent $250.00 49 Price tags $0.10 Jtilities and insurance $200.00 Salary of harness maker = 17' 173.33 = $2946.66 / month 50 $14.60 Scissors, thread, and cording $400.00 51 Loan $183.33 52 Salary to self $166.67 53 $4,311.66 54 The information given and mathematically proven here would also show that the hours Total Variable Costs per Ha $14.60 Total Fixed Costs $4,311.66 worked per week, by the makers, is not an exact 40 hours because 40 hours * 4 weeks 58 would be 160 hours per month so they're working extra since the hours total to 173.33