Please see the variable cost sheet and help me understand how to get the contribution margin per unit.thanks Based on 5 grooms per dayGROOMINGItemVariable CostsItemFixed Costs$ShampooClipper(s)1.04Groomer2,079.281.37Rent30.95Bowls0.72Loan20.00Towels5.83Utilities and Insurance28.57Scissors1.01Depreciation on heating system3.95Cleaning Products: OdobanCleaning Products: Simple Green2.082.36Draw200.00Total Variable Costs9.97Total Fixed Costs2,367.91Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.DAY CAREVariable CostsFixed CostsItemItemDay care attendant$2.88Rent232.14Toys0.27Loan150.00Bowls0.10Utilities and Insurance214.29TowelsDepreciation on heating systemCleaning Products: OdobanCleaning Products: Simple Green1.4029.6415.5916.78Draw200.00Total Variable Costs$4.65Total Fixed Costs858.44Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant.BOARDINGVariable CostsFixed CostsItemItemKennel attendant5.62Depreciation on kennels80.00Bowls0.86Rent386.90Towels0.87Loan250.00Utilities and Insurance357.14Depreciation on heating system49.40Cleaning Products: OdobanCleaning Products: Simple Green25.9829.55Draw200.00Total Variable Costs7.35Total Fixed Costs1,378.97 HK-9 Grooming & CampMILESTONE 2 - Contribution Margin per Unit & Contribution Margin RatioINSTRUCTIONS: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 Care1. With pricing at $18 per dog 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 dog per day, you can expect to have 10 dogs per day.Overnight Boarding1. With pricing at $25 per dog 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 dog per day, you can expect to have 7 dogs per day.Basic Groom1. With pricing at $25 per dog 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 CAREBOARDINGGROOMINGSales Price per Unit$$Variable Cost per UnitContribution Margin$$%24

Formula of contribution margin: Contribution margin = Sales - Variable costs Formula of contribution margin ratio: Contribution margin ratio =Contribution marginSales×100

Business

Accounting

K-9 Grooming & Camp 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 dog 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 dog per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dog 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 dog per day, you can expect to have 7 dogs per day. Basic Groom 1. With pricing at $25 per dog 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 %24

K-9 Grooming & Camp 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 dog 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 dog per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dog 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 dog per day, you can expect to have 7 dogs per day. Basic Groom 1. With pricing at $25 per dog 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 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Define and explain the contribution margin. Include the difference in fixed and variable costs in…

A: Contribution margin may be defined as the amount of profit generated when only the cost of goods…

Q: What are the formulas for: 1. Contribution Cost 2. Break even cost

A: Cost refers to the expense that is incurred for making the goods or providing services by the…

Q: My question is asking the amount of the total variable expense. Please help.

A: Variable expenses are those which do not remain constant. These expense keeps on varying with the…

Q: Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain…

A: Relevant costs are those costs that can be used while making a decision on whether to keep or…

Q: costs that change proportionately according to the changes in the cost driver.......

A: variable costs are the costs that change according to the changes in the cost drivers or changes…

Q: rovide another example of a cost center and explain why you choose that example.

A: Cost center is a department or function within an organization that does not directly add to profit…

Q: Contribution margin is the difference between total revenue and total variable costs. Select one: O…

A: The contribution margin is calculated by subtracting total variable costs from total revenue. The…

Q: Match the following terms with the correct definitions: 1. Costs that do not change in total over…

A: Cost accounting is a form of managerial accounting used to assess the cost of production and various…

Q: Sort the following contribution margin income statement line items in the correct order from top…

A: In a Contribution Margin Income Statement, the variable cost are reduced from sales revenue to get…

Q: In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…

Q: Lee Enterprises reports the following information: Net income Depreciation expense Increase in…

A: Operating cash flows represent the money a business generates or consumes from its core operations,…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Please see the variable cost sheet and help me understand how to get the contribution margin per unit.

thanks

Based on 5 grooms per day
GROOMING
Item
Variable Costs
Item
Fixed Costs
$
Shampoo
Clipper(s)
1.04
Groomer
2,079.28
1.37
Rent
30.95
Bowls
0.72
Loan
20.00
Towels
5.83
Utilities and Insurance
28.57
Scissors
1.01
Depreciation on heating system
3.95
Cleaning Products: Odoban
Cleaning Products: Simple Green
2.08
2.36
Draw
200.00
Total Variable Costs
9.97
Total Fixed Costs
2,367.91
Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.
DAY CARE
Variable Costs
Fixed Costs
Item
Item
Day care attendant
$
2.88
Rent
232.14
Toys
0.27
Loan
150.00
Bowls
0.10
Utilities and Insurance
214.29
Towels
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
1.40
29.64
15.59
16.78
Draw
200.00
Total Variable Costs
$
4.65
Total Fixed Costs
858.44
Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant.
BOARDING
Variable Costs
Fixed Costs
Item
Item
Kennel attendant
5.62
Depreciation on kennels
80.00
Bowls
0.86
Rent
386.90
Towels
0.87
Loan
250.00
Utilities and Insurance
357.14
Depreciation on heating system
49.40
Cleaning Products: Odoban
Cleaning Products: Simple Green
25.98
29.55
Draw
200.00
Total Variable Costs
7.35
Total Fixed Costs
1,378.97

H
K-9 Grooming & Camp
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 dog 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 dog per day, you can expect to have 10 dogs per day.
Overnight Boarding
1. With pricing at $25 per dog 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 dog per day, you can expect to have 7 dogs per day.
Basic Groom
1. With pricing at $25 per dog 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
$
$
%24

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Flingen Inc. reveals the following information in their annual report for FY 2021 Selected Income Statement Items: Sales $10,500,000 Cost of goods sold $5,500,000 Pretax earnings $650,000 Selected Balance Sheet Items: Merchandise inventory $800,000 Total assets $2,500,000 Upper management plans to cut cost of goods sold by 4.5% for the coming year but retain the same sales and weeks of inventory. What is the return on assets estimated to be for 2022? Group of answer choices 33.7% 32.1% 36.8% 34.1%
Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal
Can someone teach me how to calcuate contribution margin?
Express the two ways of contribution margin?
Discuss the components of the Contribution Margin Income Statement, how does management use this in the decision making process?
Please explain what is meant by the contribution margin. Also, please provide an example of how the contribution margin ratio is calculated and how the unit contribution margin is calculated.
When preparing a forecasted contribution margin income statement and you are given the units produced, how do you compute dollars per unit?