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Contribution Margin per Unit & Contribution Margin Ratio

Contribution Margin per Unit & Contribution Margin Ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you help me answer the contribution margin per unit & contribution margin ratio please.

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H K-9 Grooming & Camp 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 per Unit $ $ Variable Cost per Unit Contribution Margin $ $ %24
Transcribed Image Text:H K-9 Grooming & Camp 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 per Unit $ $ Variable Cost per Unit Contribution Margin $ $ %24
Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs $ Shampoo Clipper(s) 1.04 Groomer 2,079.28 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 Cleaning Products: Simple Green 2.08 2.36 Draw 200.00 Total Variable Costs 9.97 Total Fixed Costs 2,367.91 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 Variable Costs Fixed Costs Item Item Day care attendant $ 2.88 Rent 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green 1.40 29.64 15.59 16.78 Draw 200.00 Total 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 Variable Costs Fixed Costs Item Item 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 Cleaning Products: Simple Green 25.98 29.55 Draw 200.00 Total Variable Costs 7.35 Total Fixed Costs 1,378.97
Transcribed Image Text:Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs $ Shampoo Clipper(s) 1.04 Groomer 2,079.28 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 Cleaning Products: Simple Green 2.08 2.36 Draw 200.00 Total Variable Costs 9.97 Total Fixed Costs 2,367.91 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 Variable Costs Fixed Costs Item Item Day care attendant $ 2.88 Rent 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green 1.40 29.64 15.59 16.78 Draw 200.00 Total 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 Variable Costs Fixed Costs Item Item 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 Cleaning Products: Simple Green 25.98 29.55 Draw 200.00 Total Variable Costs 7.35 Total Fixed Costs 1,378.97
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