Contribution Margin. Determine your contribution margin per unit in the $$Contribution Margin Analysis$$ tab. Milestone Two $-$ Contribution Margin Analysis Milestone Two $-$ Break$-$Even Analysis 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

o 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 Milestone One $-$ Variable and Fixed Costs

Leashes

Total Fixed Costs

Harnesses

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$-$profit $($CVP$)$ analysis to determine your break$-$even points for achieving your target profits 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 profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.