Help with MILESTONE 2 - Break-Even Analysis

The Pup Hut MILESTONE 2 - Break-Even Analysis INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price 18.00 S 25.00 S 25.00 Fixed Costs S 858 1,379 S 2,368 Contribution Margin S 13.35 17.65 S 15.03 Break-even Units (round up) 64.00 78.00 158.00 Target Profit S 417.00 S 583.00 S 1,000.00 Break-even Units (round up) 96.00 111.00 224.00 Target Profit S 667.00 S 909.00 S 1,500.00 Break-even Units (round up)The Pup Hut MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio INSTRUCTIONS: Select a price from the scenarios below and compute the contribution for each service based on your sele Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1. SCENARIO (choose one from each category): Dog Day Care 1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day. 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. 3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day. 2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day. 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day. Basic Groom 1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day. 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day. 3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day. DAY CARE BOARDING GROOMING Sales Price per Unit 5 18.00 25.00 5 25.00 Variable Cost per Unit 4.65 7.35 9.97 Contribution Margin S 13.35 S 17.65 5 15.03View Zoom Add Category Insert Table Chart Text Shape Media Comment Variable_Fixed Instructions - Milestone 2 Contribution Margin Analysis Break- A B C D E F G H Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service. Based on 5 grooms per day GROOMING Item Variable Costs tem Fixed Costs Shampoo $ 1.04 Groomer $ 2,080.00 Clipper(s) Rent 30.95 Bowls 0.72 Loan 20.00 Towels 5.83 Utilities and Insurance 28.57 Scissors 1.01 Depreciation on heating system 3.95 Cleaning Products: Odoban 2.08 Cleaning Products: Simple Green 2.36 Draw 200.00 Total Variable Costs $ 9.97 Total Fixed Costs 2,367.91 Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel a DAY CARE Item Variable Costs Item Fixed Costs Day care attendant S 2.88 Rent S 232.14 Toys 0.27 Loan 150.00 Bowls 0. 10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Fixed Costs Kennel attendant $ 5.62 Depreciation on kennels S 80.00 Bowls 0.86 Rent 386.90 Towels 0.87 Loan 250.00 Utilities and Insurance 357.14 Depreciation on heating system 49.40 Cleaning Products: Odoban 25.98 Cleaning Products: Simple Green 29.55 Draw 200.00 Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97