Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price 20.00 $ 22.00 $ 25.00 Fixed Costs 4,028 4,029 4,201 Contribution Margin 10.90 9.90 10.40 Break-Even Units (round up) Target Profit $ 300.00 $ 400.00 $ 500.00 Break-Even Units (round up) Target Profit 500.00 600.00 650.00 Break-Even Units (round up) %24 %24 %24 %24 %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I need help figuring out how the Break Even units. You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell: ● Collars o With pricing at $20 per collar, you can expect to sell 30 collars per day. o With pricing at $24 per collar, you can expect to sell 25 collars per day. o With pricing at $28 per collar, you can expect to sell 20 collars per day ● Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day. o With pricing at $26 per leash, you can expect to sell 23 leashes per day. o With pricing at $30 per leash, you can expect to sell 18 leashes per day. ● Harnesses o With pricing at $25 per harness, you can expect to sell 25 harnesses per day. o With pricing at $30 per harness, you can expect to sell 22 harnesses per day. o With pricing at $35 per harness, you can expect to sell 20 harnesses per day. Additionally, you will need to compare your break-even points for the following target profits for each area of your business to determine your prices: ● Collars o Break-even o $300 target profit each month o $500 target profit each month ● Leashes o Break-even o $400 target profit each month o $600 target profit each month �� Harnesses o Break-even o $500 target profit each month o $650 target profit each month

Milestone Two - Break-Even Analysis
COLLARS
LEASHES
HARNESSES
Sales Price
20.00
22.00
25.00
Fixed Costs
4,028
4,029
4,201
Contribution Margin
10.90
9.90
10.40
Break-Even Units (round up)
Target Profit
300.00
400.00
500.00
Break-Even Units (round up)
Target Profit
500.00
600.00
650.00
Break-Even Units (round up)
%24
%24
Transcribed Image Text:Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price 20.00 22.00 25.00 Fixed Costs 4,028 4,029 4,201 Contribution Margin 10.90 9.90 10.40 Break-Even Units (round up) Target Profit 300.00 400.00 500.00 Break-Even Units (round up) Target Profit 500.00 600.00 650.00 Break-Even Units (round up) %24 %24
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