So I did the Milestone 1 already and it seems to be correct. Butnow...

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Accounting

So I did the Milestone 1 already and it seems to be correct. Butnow i need to do the Milestone 2

Please help.

Street Sweep
MILESTONE 1 - Variable & Fixed CostExercise
INSTRUCTIONS:
Determine the per unit cost for each dog.
Fill in the blanks to get the per unit cost andfixed cost of each service.
Based on 5 grooms per day
GROOMING
ItemVariable CostsItemFixed Costs
Shampoo$                     1.04Groomer$             2,080.01
Clipper(s)                         1.37Rent                      30.95
Bowls                         0.72Loan                      20.00
Towels                         5.83Utilities and Insurance                      28.57
Scissors                         1.01Depreciation on heating system                         3.95
Cleaning Products: Odoban                         2.08
Cleaning Products: Simple Green                         2.36
Draw                    200.00
Total Variable Costs$                     9.97Total Fixed Costs$             2,367.92
Based on 22 dogs per day for six days a week.Assume 25 operating days for kennel and 22 eight-hour work days forkennel attendant.
DAY CARE
ItemVariable CostsItemFixed Costs
Day care attendant$                     2.88Rent$                 232.14
Toys                         0.27Loan                    150.00
Bowls                         0.10Utilities and Insurance                    214.29
Towels                         1.40Depreciation on heating system                      29.64
Cleaning Products: Odoban                      15.59
Cleaning Products: Simple Green                      16.78
Draw                    200.00
Total Variable Costs$                     4.74Total Fixed Costs$                 858.44
Based on 12 dogs per day. Assume 22 eight-hour workdays for kennel attendant.
BOARDING
ItemVariable CostsItemFixed Costs
Kennel attendant$                     5.63Depreciation on kennels$                   80.00
Bowls                         0.86Rent                    386.90
Towels                         0.87Loan                    250.00
Utilities and Insurance                    357.16
Depreciation on heating system                      49.40
Cleaning Products: Odoban                      25.98
Cleaning Products: Simple Green                      29.55
Draw                    200.00
Total Variable Costs$                     7.36Total Fixed Costs$             1,378.99
Street Sweep
MILESTONE 2 - Contribution Margin per Unit &Contribution Margin Ratio
INSTRUCTIONS:
Select a price from the scenarios below and computethe contribution for each service based on your selectedprice.
Variable cost per unit comes from yourVariable_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 canexpect to have 22 dogs per day.
2. With pricing at $20 per dog per day, you canexpect to have 15 dogs per day.
3. With pricing at $25 per dog per day, you canexpect to have 10 dogs per day.
Overnight Boarding
1. With pricing at $25 per dog per day, you canexpect to have 12 dogs per day.
2. With pricing at $28 per dog per day, you canexpect to have 10 dogs per day.
3. With pricing at $30 per dog per day, you canexpect to have 7 dogs per day.
Basic Groom
1. With pricing at $25 per dog per day, you canexpect to have 5 dogs per day.
2. With pricing at $30 per dog per day, you canexpect to have 4 dogs per day.
3. With pricing at $35 per dog per day, you canexpect to have 3 dogs per day.
DAY CAREBOARDINGGROOMING
Sales Price$                          -  $                          -  $                          -  
Variable Cost per Unit                             -                               -                               -  
Contribution Margin$                          -  $                          -  $                          -  
Street Sweep
MILESTONE 2 - Break-Even Analysis
INSTRUCTIONS:
Show all steps and calculations to determine thebreak-even.
Determine the break-even for the target profitlevels as outlined in the instructions.  
Break-even = Fixed Costs / Contribution Margin
DAY CAREBOARDINGGROOMING
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)                             -                               -                               -  

Answer & Explanation Solved by verified expert
3.9 Ratings (577 Votes)

MILESTONE 2

Day Care (22 dogs per day) Boarding (12 dong per day) Grooming (5 grooms per day)
Sales Price $                                        18.00 $                                         25.00 $                                              25.00
Variable Cost Per Unit $                                           4.74 $                                            7.36 $                                                 9.97
Contribution Margin $                                        13.26 $                                         17.64 $                                              15.03
Day Care (22 dogs per day) Boarding (12 dong per day) Grooming (5 grooms per day)
Sales Price $                                        18.00 $                                         25.00 $                                              25.00
Variable Cost Per Unit $                                           4.74 $                                            7.36 $                                                 9.97
Contribution Margin $                                        13.26 $                                         17.64 $                                              15.03
Fixed Cost $                                      858.44 $                                   1,378.99 $                                        2,367.92
Break-even Units 65 79 158

Formula - Fixed Cost / Contribution per unit

Day Care Boarding Grooming
Fixed Cost $                                      858.44 $                                   1,378.99 $                                        2,367.92
Target Profit $                                      417.00 $                                       583.00 $                                        1,000.00
Total $                                  1,275.44 $                                   1,961.99 $                                        3,367.92
Contribution Margin $                                        13.26 $                                         17.64 $                                              15.03
Break Even Units 97 112 225

Formula - (Fixed Cost + Target Profit ) / Contribution Per Unit

Day Care Boarding Grooming
Fixed Cost $                                      858.44 $                                   1,378.99 $                                        2,367.92
Target Profit $                                      667.00 $                                       909.00 $                                        1,500.00
Total $                                  1,525.44 $                                   2,287.99 $                                        3,867.92
Contribution Margin $                                        13.26 $                                         17.64 $                                              15.03
Break Even Units 115 130 258

Formula - (Fixed Cost + Target Profit ) / Contribution Per Unit


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In: AccountingSo I did the Milestone 1 already and it seems to be correct. Butnow i...So I did the Milestone 1 already and it seems to be correct. Butnow i need to do the Milestone 2Please help.Street SweepMILESTONE 1 - Variable & Fixed CostExerciseINSTRUCTIONS:Determine the per unit cost for each dog.Fill in the blanks to get the per unit cost andfixed cost of each service.Based on 5 grooms per dayGROOMINGItemVariable CostsItemFixed CostsShampoo$                     1.04Groomer$             2,080.01Clipper(s)                         1.37Rent                      30.95Bowls                         0.72Loan                      20.00Towels                         5.83Utilities and Insurance                      28.57Scissors                         1.01Depreciation on heating system                         3.95Cleaning Products: Odoban                         2.08Cleaning Products: Simple Green                         2.36Draw                    200.00Total Variable Costs$                     9.97Total Fixed Costs$             2,367.92Based on 22 dogs per day for six days a week.Assume 25 operating days for kennel and 22 eight-hour work days forkennel attendant.DAY CAREItemVariable CostsItemFixed CostsDay care attendant$                     2.88Rent$                 232.14Toys                         0.27Loan                    150.00Bowls                         0.10Utilities and Insurance                    214.29Towels                         1.40Depreciation on heating system                      29.64Cleaning Products: Odoban                      15.59Cleaning Products: Simple Green                      16.78Draw                    200.00Total Variable Costs$                     4.74Total Fixed Costs$                 858.44Based on 12 dogs per day. Assume 22 eight-hour workdays for kennel attendant.BOARDINGItemVariable CostsItemFixed CostsKennel attendant$                     5.63Depreciation on kennels$                   80.00Bowls                         0.86Rent                    386.90Towels                         0.87Loan                    250.00Utilities and Insurance                    357.16Depreciation on heating system                      49.40Cleaning Products: Odoban                      25.98Cleaning Products: Simple Green                      29.55Draw                    200.00Total Variable Costs$                     7.36Total Fixed Costs$             1,378.99Street SweepMILESTONE 2 - Contribution Margin per Unit &Contribution Margin RatioINSTRUCTIONS:Select a price from the scenarios below and computethe contribution for each service based on your selectedprice.Variable cost per unit comes from yourVariable_Fixed tab completed in Milestone 1.SCENARIO (choose one from each category):Dog Day Care1. With pricing at $18 per dog per day, you canexpect to have 22 dogs per day.2. With pricing at $20 per dog per day, you canexpect to have 15 dogs per day.3. With pricing at $25 per dog per day, you canexpect to have 10 dogs per day.Overnight Boarding1. With pricing at $25 per dog per day, you canexpect to have 12 dogs per day.2. With pricing at $28 per dog per day, you canexpect to have 10 dogs per day.3. With pricing at $30 per dog per day, you canexpect to have 7 dogs per day.Basic Groom1. With pricing at $25 per dog per day, you canexpect to have 5 dogs per day.2. With pricing at $30 per dog per day, you canexpect to have 4 dogs per day.3. With pricing at $35 per dog per day, you canexpect to have 3 dogs per day.DAY CAREBOARDINGGROOMINGSales Price$                          -  $                          -  $                          -  Variable Cost per Unit                             -                               -                               -  Contribution Margin$                          -  $                          -  $                          -  Street SweepMILESTONE 2 - Break-Even AnalysisINSTRUCTIONS:Show all steps and calculations to determine thebreak-even.Determine the break-even for the target profitlevels as outlined in the instructions.  Break-even = Fixed Costs / Contribution MarginDAY CAREBOARDINGGROOMINGSales Price$                          -  $                          -  $                          -  Fixed Costs$                          -  $                          -  $                          -  Contribution Margin$                          -  $                          -  $                          -  Break-even Units (round up)                             -                               -                               -  Target Profit$                 417.00$                 583.00$             1,000.00Break-even Units (round up)                             -                               -                               -  Target Profit$                 667.00$                 909.00$             1,500.00Break-even Units (round up)                             -                               -                               -  

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