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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

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
Milestone Two - Contribution Margin Analysis
COLLARS LEASHES HARNESSES
Sales Price per Unit
Variable Cost per Unit
Contribution Margin
Milestone Two - 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) - - -

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