Question

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

Please help.

	Street Sweep
	MILESTONE 1 - Variable & Fixed Cost Exercise
	INSTRUCTIONS:
	Determine the per unit cost for each dog.
	Fill in the blanks to get the per unit cost and fixed cost of each service.
	Based on 5 grooms per day
	GROOMING
	Item	Variable Costs		Item	Fixed Costs
	Shampoo	$                      1.04		Groomer	$              2,080.01
	Clipper(s)	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	2.08
				Cleaning Products: Simple Green	2.36
				Draw	200.00
	Total Variable Costs	$                      9.97		Total 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 for kennel attendant.
	DAY CARE
	Item	Variable Costs		Item	Fixed Costs
	Day care attendant	$                      2.88		Rent	$                  232.14
	Toys	0.27		Loan	150.00
	Bowls	0.10		Utilities and Insurance	214.29
	Towels	1.40		Depreciation on heating system	29.64
				Cleaning Products: Odoban	15.59
				Cleaning Products: Simple Green	16.78
				Draw	200.00
	Total Variable Costs	$                      4.74		Total Fixed Costs	$                  858.44
	Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant.
	BOARDING
	Item	Variable Costs		Item	Fixed Costs
	Kennel attendant	$                      5.63		Depreciation on kennels	$                    80.00
	Bowls	0.86		Rent	386.90
	Towels	0.87		Loan	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	$                      7.36		Total 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 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	$                           -		$                           -		$                           -
	Variable Cost per Unit	-		-		-
	Contribution Margin	$                           -		$                           -		$                           -
	Street Sweep 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)                               -                                 -                                 -

Answer 1

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