Question

E FO Number 5 Formatting Table Styles Clipboard Font Alignment Styles Q12 . в со E F G H I J K L M мора For simplicity, base all calculations using 30 days in each month OPERATIONAL DATA Grooming: The Groomer can groom 5 dogs a day, 5 days a week Each grooming takes 1.5 labor hours Day Care: The Day Care can house 10 large dogs and 12 small dogs daily. Day Care is offered 6 days a week Boarding: There are 12 kennels (single dog only). Boarding (kennel services) is offered every day Facilities: The Grooming facility is 200 square feet The Boarding facility is 2,500 square feet The Day Care facility is 1,500 square feet General: Loan for start-up costs - monthly payment of $420; in effect immediately; limited cash and loan funding - used angel investors Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, boarding) SALARY & HIRING DATA Groomer (Allison) - $12.00 an hour, 40 hours a week Day Care Attendant (Beverly) - $9.00 per hour, based on need Receptionist (Cathie) - $8.50 per hour, 30 hours a week Kennel Attendant (Ben) - $11.50 per hour, based on need 1 OTHER COST DATA . Instructions - Milestone 1 Company Profile Cost Classification Variable Fixed Instructions - Milestone 2 Contribution Margin An Start a search

I have to find the fixed costs for GROOMER

Also I have to write the answer with the Excel formula

Answer 1

Since salary of the groomer is a fixed cost. it does not matter how many dogs the groomer ends up grooming a day so long as its less than or equal to the maximum agreed 5.

Daily labor hour budget of the groomer is 8 hours per day. we know that he grooms 5 dogs a day with each consuming 1.5 hours.

Hence total labor hours per day for the groomer is 1.5 x 5 = 7.5. since this is withing the maximum working hours of 8 per day. he is not eligible for any overtime pay. the groomer gets paid his fixed salary of 12 dollars per hour for 40 hours a week nevertheless.

the fixed cost of groomer can be calculated using the simple formula = Hours per week x Hourly wage rate

= 40 x 12 ( you may assign these values using formula by referencing to respective cells in instruction Milestone 1 tab)

= $ 480 / Week