Question

In: Accounting

Select a price from the scenarios below and compute the contribution for each service based on your selected price.

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	$ 18.00	$ 25.00	$ 25.00
Variable Cost per Unit	4.65	7.36	9.97

Contribution Margin	$ 13.35	$ 17.64	$ 15.03

Expert Solution

ekkarill92 answered 2 years ago

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