FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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please help me with the break even analysis

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### Expense Breakdown for Pet Services

The following table provides a breakdown of variable and fixed costs associated with providing grooming, daycare, and boarding services for pets. The calculations are based on specific numbers of dogs per day for each service.

#### Grooming
- **Based on 5 grooms per day**

**Variable Costs:**
- Shampoo: $1.04
- Clippers: $1.37
- Bowls: $0.72
- Towels: $5.83
- Scissors: $1.01
- **Total Variable Costs: $9.97**

**Fixed Costs:**
- Groomer: $2,079.28
- Rent: $30.95
- Loan: $20.00
- Utilities and Insurance: $28.57
- Depreciation on Heating System: $3.95
- Cleaning Products (Odoban): $2.08
- Cleaning Products (Simple Green): $2.36
- Draw: $200.00
- **Total Fixed Costs: $2,367.91**

---

#### Day Care
- **Based on 22 dogs per day for six days a week. Assumes 25 operating days for kennel and 22 eight-hour workdays for kennel attendant.**

**Variable Costs:**
- Day Care Attendant: $2.88
- Toys: $0.27
- Bowls: $0.10
- Towels: $1.40
- **Total Variable Costs: $4.65**

**Fixed Costs:**
- Rent: $232.14
- Loan: $150.00
- Utilities and Insurance: $214.29
- Depreciation on Heating System: $29.64
- Cleaning Products (Odoban): $15.59
- Cleaning Products (Simple Green): $16.78
- Draw: $200.00
- **Total Fixed Costs: $858.44**

---

#### Boarding
- **Based on 12 dogs per day. Assumes 22 eight-hour workdays for kennel attendant.**

**Variable Costs:**
- Kennel Attendant: $5.62
- Bowls: $0.86
- Towels: $0.87
- **Total Variable Costs: $7.35**

**Fixed Costs:**
- Depreciation on Kennels: $80.00
- Rent: $386.90
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Transcribed Image Text:### Expense Breakdown for Pet Services The following table provides a breakdown of variable and fixed costs associated with providing grooming, daycare, and boarding services for pets. The calculations are based on specific numbers of dogs per day for each service. #### Grooming - **Based on 5 grooms per day** **Variable Costs:** - Shampoo: $1.04 - Clippers: $1.37 - Bowls: $0.72 - Towels: $5.83 - Scissors: $1.01 - **Total Variable Costs: $9.97** **Fixed Costs:** - Groomer: $2,079.28 - Rent: $30.95 - Loan: $20.00 - Utilities and Insurance: $28.57 - Depreciation on Heating System: $3.95 - Cleaning Products (Odoban): $2.08 - Cleaning Products (Simple Green): $2.36 - Draw: $200.00 - **Total Fixed Costs: $2,367.91** --- #### Day Care - **Based on 22 dogs per day for six days a week. Assumes 25 operating days for kennel and 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Day Care Attendant: $2.88 - Toys: $0.27 - Bowls: $0.10 - Towels: $1.40 - **Total Variable Costs: $4.65** **Fixed Costs:** - Rent: $232.14 - Loan: $150.00 - Utilities and Insurance: $214.29 - Depreciation on Heating System: $29.64 - Cleaning Products (Odoban): $15.59 - Cleaning Products (Simple Green): $16.78 - Draw: $200.00 - **Total Fixed Costs: $858.44** --- #### Boarding - **Based on 12 dogs per day. Assumes 22 eight-hour workdays for kennel attendant.** **Variable Costs:** - Kennel Attendant: $5.62 - Bowls: $0.86 - Towels: $0.87 - **Total Variable Costs: $7.35** **Fixed Costs:** - Depreciation on Kennels: $80.00 - Rent: $386.90
**K-9 Grooming & Camp: 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.

**Formula:**
- Break-even = Fixed Costs / Contribution Margin

**Table:**

|                     | DAY CARE | BOARDING | GROOMING |
|---------------------|----------|----------|----------|
| **Sales Price**     | $ -      | $ -      | $ -      |
| **Fixed Costs**     | $ -      | $ -      | $ -      |
| **Contribution Margin** | $ -  | $ -      | $ -      |
| **Break-even Units (round up)** | - | -  | -        |

**Target Profit for Each Service:**

1. **Target Profit $417.00**  
   - Break-even Units (round up): 
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

2. **Target Profit $583.00**  
   - Break-even Units (round up):
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

3. **Target Profit $667.00**  
   - Break-even Units (round up):
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

4. **Target Profit $909.00**  
   - Break-even Units (round up):
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

5. **Target Profit $1,000.00**  
   - Break-even Units (round up):
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

6. **Target Profit $1,500.00**  
   - Break-even Units (round up):
      - Day Care: -  
      - Boarding: -  
      - Grooming: -  

**Notes:**
- To determine the break-even point, input the values for fixed costs and contribution margin for each service.
- The target profit levels provided should be used to calculate the corresponding break-even units.
expand button
Transcribed Image Text:**K-9 Grooming & Camp: 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. **Formula:** - Break-even = Fixed Costs / Contribution Margin **Table:** | | DAY CARE | BOARDING | GROOMING | |---------------------|----------|----------|----------| | **Sales Price** | $ - | $ - | $ - | | **Fixed Costs** | $ - | $ - | $ - | | **Contribution Margin** | $ - | $ - | $ - | | **Break-even Units (round up)** | - | - | - | **Target Profit for Each Service:** 1. **Target Profit $417.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 2. **Target Profit $583.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 3. **Target Profit $667.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 4. **Target Profit $909.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 5. **Target Profit $1,000.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - 6. **Target Profit $1,500.00** - Break-even Units (round up): - Day Care: - - Boarding: - - Grooming: - **Notes:** - To determine the break-even point, input the values for fixed costs and contribution margin for each service. - The target profit levels provided should be used to calculate the corresponding break-even units.
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