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ACC 202 Milestone One Guidelines and Rubric Overview: In the first milestone of your final project, you will determine and classify the costs necessary for opening your business. This is a critical step that must be done correctly for you to successfully complete the subsequent milestones and the final submission. Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below. There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of 1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is $420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services. Note: For simplicity, base all calculations using 30 days in each month. You have hired the following people: A groomer, Allison, who will be paid $12/hour and work 40 hours a week· A day care attendant, Beverly, who will be paid $9/hour and will work based on need· A receptionist, Cathie, who will be paid $8.50/hour and work 30 hours a week· A kennel attendant, Ben, who will be paid $11.50/hour and will work based on need· A complete list of additional costs is provided below: Food and water bowls: $3.59/unit· o Daycare: Two bowls last for every 75 dogs that attend daycare. o Boarding: Two bowls last for every 100 dogs that are boarded; you need two bowls per kennel. o Grooming: Each bowl lasts for 20 grooms and you need four bowls at all times. Fencing for daycare area: $1,249; installation of fencing: $1,000· Dog grooming arm: $300· 12 kennels: $9,500; depreciation is $80/month· Rent: $650/month; allocate based on square footage· Utilities/insurance: $600/month; allocate based on square footage· Grooming table: $900· Grooming tub: $2800· Heating system: $10,000; depreciation is $83/month; allocate based on square footage· Clippers: $136.99; can be used for 100 grooms· Shampoo: $103.96 per five-gallon pail, which can be used for 100 grooms· Cage bank: $2200 per set of 5· Salon Tuff Capri mobile carry cart: $90· Towels: $34.99 per 12 pack· o Day care: You need to have 12 towels for every 25 dogs. o Boarding: You need to have 12 towels for every 40 dogs. o Grooming: You need to have two towels for every groom per day. Scissors: (1) 7-inch straight is $194.99, and (1) ear-and-nose is $7.49; each can be used for 200 grooms.· Toys: $3.29 per 6-pack; one toy will last for two dogs in day care, per day.· Cleaning products:· o Odoban: $14.55/gallon: Each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. o Simple Green: $15.66/gallon: each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. Dryer: $1250· Rubberized flooring for day care: $3800· Prompt: In your provided workbook, complete the first three tabs, addressing the following critical elements: Determine the unique characteristics of your company in the “Company Profile” tab of your workbook.· Accurately classify all of your costs in the “Cost Classification” tab of your workbook.· Determine your per-unit cost per dog in the “Variable_Fixed” tab of your workbook.·
ACC 202 Milestone Two Guidelines and Rubric Overview: In the second milestone of your final project, you will complete your pre-opening strategy. You must analyze the cost behaviors and systems of your industry and then conduct the relevant financial calculations to determine appropriate costing solutions. Be sure to use your work from Milestone One to inform your analysis and proposals. Scenario: Prior to Opening, Part II: Your market research indicated the following price ranges as optimal for your area: Dog Day Care· o With pricing at $18 per dog per day, you can expect to have 22 dogs per day. o With pricing at $20 per dog per day, you can expect to have 15 dogs per day. o With pricing at $25 per dog per day, you can expect to have 10 dogs per day. Overnight Boarding· o With pricing at $25 per dog per day, you can expect to have 12 dogs per day. o With pricing at $28 per dog per day, you can expect to have 10 dogs per day. o With pricing at $30 per dog per day, you can expect to have 7 dogs per day. Basic Groom· o With pricing at $25 per groom, you can expect to do 5 grooms per day. o With pricing at $30 per groom, you can expect to do 4 grooms per day. o With pricing at $35 per groom, you can expect to do 3 grooms per day. Additionally, you need to compare your break-even points for the following target profits for each area of your business: Day Care· o Break-even o $417 target profit each month o $667 target profit each month Boarding· o Break-even o $583 target profit each month o $909 target profit each month Grooming· o Break-even o $1,000 target profit each month o $1,500 target profit each month Prompt: Continue your work in your provided workbook by conducting a cost-volume profit analysis, specifically addressing the following critical elements: Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab.· Determine your break-even points for achieving your target profits in the “Break-Even Analysis” tab.· Incorporate all feedback from Milestone One.·
ACC 202 Milestone Three Guidelines and Rubric Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information to analyze your company’s performance. Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company’s financial health. Therefore, you need to analyze your company’s performance over the last month using the data provided below. Note: Your instructor will create an announcement sharing the income statement data by the end of Module Four. All of the data you need for the cost-ofgoods-manufactured statement can be found in the “COGM Schedule” tab of your workbook. For your variance analysis, use the following financial data: Grooming labor Standard Hours Standard Rate Actual Hours Actual Rate 150 $12 180 $11.50 Grooming Materials Standard Quantity Standard Price Actual Quantity Actual Price 1000 $2 1200 $3 Prompt: Complete your work in the provided workbook by assessing your company’s financial performance, specifically addressing the following critical elements: Financial Statements· ○ Create a statement of cost of goods manufactured in the “COGM Schedule” tab. ○ Create an income statement in the “Income Statement” tab. Variance Analysis· ○ Identify all variances for the direct labor time and the materials price in the “Variances” tab. ○ Evaluate the significance of the variances in the “Variances” tab. Incorporate all feedback from previous milestones to finalize your workbook·
income for January – actual activity based on price levels
For example, if you chose a grooming price of $25 per groom, the actual grooms in January were 4 per day. Assume a 30 day month
Grooming – price of $25 – actual grooms were 4 per day; price of $30 – actual grooms were 3 per day; price of $35 – actual grooms were 2 per day
Daycare – price of $18 – 22 dogs were housed; price of $20 – 12 dogs were housed; at $25 – 9 dogs were housed (all per day).
Kennel – price of $25 – 12 dogs were housed; at $28 – 9 dogs were housed; at $30 – 6 dogs were housed (per day)
| Additional information necessary to complete income statement: | |||||||||||||
| General and Administrative Salaries paid $1,200 | |||||||||||||
| Advertising $100 | |||||||||||||
| Cleaning products $120 | |||||||||||||
| Depreciation $83 | |||||||||||||
| Rent $650 | |||||||||||||
| Loan $420 | |||||||||||||
| Utilities and insurance $600 | |||||||||||||
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