Milestone Two Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit $20.00 $22.00 $25.00 Variable Cost per Unit $9.10 $12.10 $14.60 Contribution Margin $10.80 $9.90 $10.40

Milestone Two Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price $20.00 $22.00 $25.00 Collars Break-even units $4,028/$10.90 = $369.57 or 370 units Fixed Costs $4,028 $4,089 $4,266 Leashes Break-even units $4,089.29/$9.90 =$413.06 or 413 units Contribution Margin $10.80 $ 9.90 $10.40 Break-Even Units (round up) 370 Units 413 Units 410 Units Harnesses Break-even units $4,266.43/$10.40 = 410 units Target Profit $500.00 $600.00 $650.00 Total fixed cost + target profit divided by the contribution margin Break-Even Units (round up) 415.00 474.00 473.00

Milestone Three Statement of Cost of Goods Sold

Beginning Work in Process Inventory $ - Direct Materials: Materials: Beginning 0 Add: Purchases for month of January ________________ Materials available for use ________________ Deduct: Ending materials ________________ Materials Used _______________ Direct Labor _______________ Overhead ________________ Total Costs _________________ Deduct: Ending Work in Process Inventory ___________0 Cost of Goods Sold ______________________

Milestone Three Income Statement

Revenue: Collars $ - Leashes $ - Harnesses $ - Total Revenue: $ - Cost of goods sold - Gross profit $ - Expenses: General and administrative salaries $ - Office supplies - Other business equipment - Total Expenses $ - Net Income/Loss $ - Milestone Three Variance Analysis

Data for Variance Analysis: Budgeted (Standard) Budgeted (Standard) Actual Actual Hours/Qty Hours/Qty Rate Labor ____________ _____________ __________ ________

Materials ____________ ______________ ___________ ________ Variances for Collar Sales

Variance Favorable/Unfavorable Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ - Direct Labor Rate Variance

(Actual Rate - Standard Rate) x Actual Hours $ - Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ - Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ -