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:

Please write detailed instructions so I can understand how to applied going forward

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

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

• Harnesses
  • With pricing at $25 per harness, you can expect to sell 25 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

Variable and Fixed Costs
Collars
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 4.00		Collar maker's salary (monthly)	$2,773.33
Polyester/nylon ribbons	$ 3.00		Depreciation on sewing machines	$ 55.00
Buckles made of cast hardware	$ 2.00		Rent	$ 250.00
Price tags	$ 0.10		Utilities and insurance	$ 200.00
			Scissors, thread, and cording	$ 400.00
			Loan payment	$ 183.33
			Salary to self	$ 166.67
Total Variable Costs per Collar	$ 9.10		Total Fixed Costs	$ 4,028.33
Leashes
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 6.00		Leash maker's salary (monthly)	$2,773.33
Polyester/nylon ribbons	$ 4.50		Depreciation on sewing machines	$ 55.00
Buckles made of cast hardware	$ 1.50		Rent	$ 250.00
Price tags	$ 0.10		Utilities and insurance	$ 200.00
			Scissors, thread, and cording	$ 400.00
			Loan payment	$ 183.33
			Salary to self	$ 166.67
Total Variable Costs per Leash	$ 12.10		Total Fixed Costs	$ 4,028.33
Harnesses
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 6.00		Harness maker's salary	$2,946.67
Polyester/nylon ribbons	$ 4.50		Depreciation on sewing machines	$ 55.00
Buckles made of cast hardware	$ 4.00		Rent	$ 250.00
Price tags	$ 0.10		Utilities and insurance	$ 200.00
			Scissors, thread, and cording	$ 400.00
			Loan	$ 183.33
			Salary to self	$ 166.67
Total Variable Costs per Harness	$ 14.60		Total Fixed Costs	$ 4,201.67
Contribution Margin Analysis
	COLLARS		LEASHES		HARNESSES
Sales Price per Unit
Variable Cost per Unit			-		-
Contribution Margin
	Break-Even Analysis
		COLLARS		LEASHES		HARNESSES
	Sales Price	$ -		$ -		$ -
	Fixed Costs	$ -		$ -		$ -
	Contribution Margin	$ -		$ -		$ -
	Break-Even Units (round up)	-		-		-
	Target Profit	$300.00		$ 400.00		$500.00
	Break-Even Units (round up)	-		-		-
	Target Profit	$500.00		$ 600.00		$650.00
	Break-Even Units (round up)	-		-		-