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K-9 Grooming & Camp 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 $ Fixed Costs $ Contribution Margin $ $ $ Break-even Units (round up) Target Profit 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) Target Profit 667.00 $ 909.00 $ 1,500.00 Break-even Units (round up) %24 %24 %24 %24 %24 %24

K-9 Grooming & Camp 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 $ Fixed Costs $ Contribution Margin $ $ $ Break-even Units (round up) Target Profit 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) Target Profit 667.00 $ 909.00 $ 1,500.00 Break-even Units (round up) %24 %24 %24 %24 %24 %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please help me with the break even analysis

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### Expense Breakdown for Pet Services The following table provides a breakdown of variable and fixed costs associated with providing grooming, daycare, and boarding services for pets. The calculations are based on specific numbers of dogs per day for each service. #### Grooming - **Based on 5 grooms per day** **Variable Costs:** - Shampoo: $1.04 - Clippers: $1.37 - Bowls: $0.72 - Towels: $5.83 - Scissors: $1.01 - **Total Variable Costs: $9.97** **Fixed Costs:** - Groomer: $2,079.28 - 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. Assumes 25 operating days for kennel and 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Day Care Attendant: $2.88 - Toys: $0.27 - Bowls: $0.10 - Towels: $1.40 - **Total Variable Costs: $4.65** **Fixed Costs:** - 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. Assumes 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Kennel Attendant: $5.62 - Bowls: $0.86 - Towels: $0.87 - **Total Variable Costs: $7.35** **Fixed Costs:** - Depreciation on Kennels: $80.00 - Rent: $386.90
Transcribed Image Text:### Expense Breakdown for Pet Services The following table provides a breakdown of variable and fixed costs associated with providing grooming, daycare, and boarding services for pets. The calculations are based on specific numbers of dogs per day for each service. #### Grooming - **Based on 5 grooms per day** **Variable Costs:** - Shampoo: $1.04 - Clippers: $1.37 - Bowls: $0.72 - Towels: $5.83 - Scissors: $1.01 - **Total Variable Costs: $9.97** **Fixed Costs:** - Groomer: $2,079.28 - 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. Assumes 25 operating days for kennel and 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Day Care Attendant: $2.88 - Toys: $0.27 - Bowls: $0.10 - Towels: $1.40 - **Total Variable Costs: $4.65** **Fixed Costs:** - 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. Assumes 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Kennel Attendant: $5.62 - Bowls: $0.86 - Towels: $0.87 - **Total Variable Costs: $7.35** **Fixed Costs:** - Depreciation on Kennels: $80.00 - Rent: $386.90
**K-9 Grooming & Camp: 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. **Formula:** - Break-even = Fixed Costs / Contribution Margin **Table:** | | DAY CARE | BOARDING | GROOMING | |---------------------|----------|----------|----------| | **Sales Price** | $ - | $ - | $ - | | **Fixed Costs** | $ - | $ - | $ - | | **Contribution Margin** | $ - | $ - | $ - | | **Break-even Units (round up)** | - | - | - | **Target Profit for Each Service:** 1. **Target Profit $417.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 2. **Target Profit $583.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 3. **Target Profit $667.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 4. **Target Profit $909.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 5. **Target Profit $1,000.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 6. **Target Profit $1,500.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - **Notes:** - To determine the break-even point, input the values for fixed costs and contribution margin for each service. - The target profit levels provided should be used to calculate the corresponding break-even units.
Transcribed Image Text:**K-9 Grooming & Camp: 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. **Formula:** - Break-even = Fixed Costs / Contribution Margin **Table:** | | DAY CARE | BOARDING | GROOMING | |---------------------|----------|----------|----------| | **Sales Price** | $ - | $ - | $ - | | **Fixed Costs** | $ - | $ - | $ - | | **Contribution Margin** | $ - | $ - | $ - | | **Break-even Units (round up)** | - | - | - | **Target Profit for Each Service:** 1. **Target Profit $417.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 2. **Target Profit $583.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 3. **Target Profit $667.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 4. **Target Profit $909.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 5. **Target Profit $1,000.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 6. **Target Profit $1,500.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - **Notes:** - To determine the break-even point, input the values for fixed costs and contribution margin for each service. - The target profit levels provided should be used to calculate the corresponding break-even units.
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