COLLARS LEASHES HARNESSES Sales Price $ 24.00 $ 22.00 $ 35.00 Fixed Costs $ - $ - $ - Contribution Margin $ 14.90 $ 9.90 $ 20.40 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) - - -
COLLARS LEASHES HARNESSES Sales Price $ 24.00 $ 22.00 $ 35.00 Fixed Costs $ - $ - $ - Contribution Margin $ 14.90 $ 9.90 $ 20.40 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) - - -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 24.00 | $ 22.00 | $ 35.00 | |||
| Fixed Costs | $ - | $ - | $ - | |||
| Contribution Margin | $ 14.90 | $ 9.90 | $ 20.40 | |||
| 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) | - | - | - | |||
Transcribed Image Text:1
2
1345
3 Milestone Two - Contribution Margin Analysis
6
8 Sales Price per Unit
9 Variable Cost per Unit
11 Contribution Margin
12
$
$
COLLARS
24.00
9.10
14.90
$
$
LEASHES
22.00
12.10
9.90
$
$
HARNESSES
35.00
14.60
20.40
Transcribed Image Text:Milestone One - Variable and Fixed Costs
Collars
Item
High-tensile strength nylon webbi $
Polyester/nylon ribbons
$
Buckles made of cast hardware
Price tage
Total Variable Costs per
riable Cost/Item
4.00
3.00
2.00
0.10
Leashes
Item
High-tensile strength nylon webbi $
Polyester/nylon ribbons
$
Buckles made of cast hardware $
Price tags
Harnesses
9.10
riable Cost/ltem
6.00
4.50
1.50
0.10
Total Variable Costs per___$_ 12.10
Item
High-tensile strength nylon webbi $
Polyester/nylon ribbons
Buckles made of cast hardware $
Price tags
$
riable Cost/ltem
6.00
4.50
4.00
0.10
Total Variable Costs per___$_ 14.60
Item
$
Collar maker's salary (monthly)
Depreciation on sewing machines $
$
$
$
$
$
Rent
Utilities and insurance
Scissors, thread, and cording
Loan payment
Salary to self
Total Fixed Costs
Item
Leach maker's salary (monthly)
Depreciation on sewing machines
Rent
Utilities and insurance
Scissors, thread, and cording
Loan payment
Salary to self
Total Fixed Costs
Rent
Utilities and insurance
Scissors, thread, and cording
Fixed Costs
2,773.33
55.00
250.00
200.00
400.00
Loan
Salary to self
Total Fixed Costs
$4,028.33
Fixed Costs
2,773.33
55.00
250.00
200.00
400.00
183.33
166.67
$
$
Item
Harness maker's salary
$
Depreciation on sewing machines $
$
$
$
↑
$
183.33
166.67
$
$
$
$
$
$4,028.33
Fixed Costs
2,946.67
55.00
250.00
200.00
400.00
183.33
166.67
$4,201.67
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