OPERATIONAL & COST INFORMATION: For simplicity, base all calculations using 30 days in each month OPERATIONAL DATA Grooming The Groomer can groom 5 dogs a day, 5 days a week Each grooming takes 1.5 labor hours Day Care: The Day Care can house 10 large dogs and 12 small dogs daily, Day Care is offered 6 days a week Boarding: There are 12 kennels (single dog only Boarding (kennel services) is offered every day Facilities: The Grooming facility is 200 square feet The Boarding facility is 2,500 square feet The Day Care facility is 1,500 square feet General: Loan for start-up costs - monthly payment of $420; in effect immediately, limited cash and loan funding - used angel investors Modest monthly draw of $600 a month for first year, should be divided evenly amoung the services (grooming day care, boarding SALARY & HIRING DATA Groomer (Allison) - $12.00 an hour, 40 hours a week Day Care Attendant (Beverly) - $9.00 per hour, based on need Receptionist (Cathie) - $8.50 per hour, 30 hours a week Kennel Attendant (Ben) - $11.50 per hour, based on need Cleaning Products Odoban - $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water; Allocate based on square footage Simple Green - $15.66 per gallon; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage Palmetto Dog Care 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 selected price 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 dag 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 dag per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dag 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 dag per day, you can expect to have 7 dogs per day. Basic Groom 1. With pricing at $25 per dag 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 Variable Cost per Unit Contribution Margin Palmetto Dog Care MILESTONE 2 - Break-Even Analysis wa 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 Marrin DAY CARE BOARDING GROOMING 17 Sales Price Fixed Costs Contribution Margin Break-even Units (round up) Target Profit $ 417.00 $ 583.00 $ 1,000.00 28 Break-even Units (round up) Target Profit $ 667.00 $ 909.00 $ 1,500.00 Break-even Units (round up)