Reference no: EM132308965
Part 1:
1. What's the break even point in units--how many dogs will you need to groom in the first year to break even?
2. If you and your two employees groomed dogs five days a week, seven hours a day, fifty weeks a year, how many dogs would each of you need to groom each day? Is this a elastic given that it takes one hour to groom a dog?
Part 2:
1. If you raised your grooming fee to $38, how many dogs would you need to groom to break even?
2. At this new price, how many dogs will each of you have to groom each day (assuming, again, that the three of you groom dogs fifty weeks a year, five days a week, seven hours a day?
Part 3
1. Would you start this business?
2. What price would you charge to groom a dog?
3. How could you lower the break-even point and make the business more profitable?
Attachment:- Breakeven Analysis.rar
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