For the contribution margin analysis, select a price for each service. Determine the variable cost from the variable fixed (information provided below) for each service and calculate the contribution margin for each service based on your sales price and the variable cost for that service. For the break-even analysis, determine the fixed from the variable fixed (information provided below) designation is provided, calculate the break-even units (round up) for each service, calculate the break-even units (round up) for suggested target profile levels for each service. Variable fixed Information (use this to fill out the following information in the two pictures) GROOMING (based on 5 grooms per day) Shampoo - $1.04 Clippers - $1.37 Bowls - $0.72 Towels - $5.83 Scissors - $1.01 Total Variable costs - $9.97 Groomer - $2,080.00 Rent - $30.95 Loan - $20.00 Utilities and Insurance - $28.57 Depreciation on heating system - $3.95 Cleaning products : Odoban - $2.08 Cleaning products : Simple Green - $2.36 Draw : $200.00 Total Fixed Costs - $2,367.91 DAY CARE (based on 22 dogs per day for six days a week. Assume 25 operating days for a kennel and 22 eight-hour work days for kennel attendant) Day care attendant - $2.88 Toys - $0.27 Bowls - $0.10 Towels - $1.40 Total Variable Costs - $4.65 Rent - $232.14 Loan - $150.00 Utilities and Insurance - $214.29 Depreciation on heating system - $29.64 Cleaning Products : Odoban - $15.59 Cleaning Products : Simple Green - $16.78 Draw - $200.00 Total Fixed Costs - $858.44 BOARDING (based on 12 dogs per day. Assume 22 eight hour work-days for kennel attendant) Kennel attendant - $5.62 Bowls - $0.86 Towels - $0.87 Total Variable Costs - $7.35 Depreciation on kennels - $80.00 Rent - $$386.90 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 Fixed Costs - $1378.97
I am attaching two pictures, one is the contribution margin analysis and the other is the break-even analysis.
For the contribution margin analysis, select a price for each service. Determine the variable cost from the variable fixed (information provided below) for each service and calculate the contribution margin for each service based on your sales price and the variable cost for that service.
For the break-even analysis, determine the fixed from the variable fixed (information provided below) designation is provided, calculate the break-even units (round up) for each service, calculate the break-even units (round up) for suggested target profile levels for each service.
Variable fixed Information (use this to fill out the following information in the two pictures)
GROOMING (based on 5 grooms per day)
Shampoo - $1.04
Clippers - $1.37
Bowls - $0.72
Towels - $5.83
Scissors - $1.01
Total Variable costs - $9.97
Groomer - $2,080.00
Rent - $30.95
Loan - $20.00
Utilities and Insurance - $28.57
Cleaning products : Odoban - $2.08
Cleaning products : Simple Green - $2.36
Draw : $200.00
Total Fixed Costs - $2,367.91
DAY CARE (based on 22 dogs per day for six days a week. Assume 25 operating days for a kennel and 22 eight-hour work days for kennel attendant)
Day care attendant - $2.88
Toys - $0.27
Bowls - $0.10
Towels - $1.40
Total Variable Costs - $4.65
Rent - $232.14
Loan - $150.00
Utilities and Insurance - $214.29
Depreciation on heating system - $29.64
Cleaning Products : Odoban - $15.59
Cleaning Products : Simple Green - $16.78
Draw - $200.00
Total Fixed Costs - $858.44
BOARDING (based on 12 dogs per day. Assume 22 eight hour work-days for kennel attendant)
Kennel attendant - $5.62
Bowls - $0.86
Towels - $0.87
Total Variable Costs - $7.35
Depreciation on kennels - $80.00
Rent - $$386.90
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 Fixed Costs - $1378.97
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