Question

milstone one :

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       Towel 1.40    Depreciation on heating system                       29.64       Cleaning Products: Odoban                                15.59

Cleaning Products: Simple Green 16.78 Draw 200.00Total 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 Item       Variable Costs                   Item       Fixed Costs 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                                25.98           

Cleaning Products: Simple Green   29.55     Draw   200.00 Total Variable Costs$  7.36     Total Fixed Costs$1,378.99             

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

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$                          -   $                          -   $                          -  

Answer 1

contribution margin = selling price per unit - variable cost per unit

	DAY CARE	BOARDING	GROOMING
Sales price	18	25	25
Variable cost per unit	4.65	7.36	9.97
Contribution margin	13.35	17.64	15.03

Dear Student,

Kindly take note that the calculation for contribution margin has been provided based on the sales and variable cost per unit details provided by you.