INSTRUCTIONS: Show all steps and calculations to determine the break-even. Deter

Question

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. Round all decimals UP to next whole number. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $18.00 $25.00 $25.00 Fixed Costs $858 $1,379 $2,368 Contribution Margin $13.26 $17.65 $15.03 Break-Even Units (round up) 65.00 79.00 158.00 Target Profit $417.00 $583.00 $1,000.00 Break-Even Units (round up) - - - Target Profit $667.00 $909.00 $1,500.00 Break-Even Units (round up) - - -

Explanation / Answer

Day Care Boarding Sales Price $18 $25 $25 Contribution margin C 13.26 17.65 15.03 Fixed cost F $858 1379 2368 Target Profit T $417 583 1000 Ans 1 Break even Formual=(T+F)/C 96 111 224 for example (417+858)/13.26 (1379+583)/17.65 (1000+2368)/15.03 ans 2 Target profit P 667 909 1500 Break even P+F/C 115 130 257 (667+858)/13.26 (909+583)/17.65 (1500+2368)/15.03 If any doubt please comment

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