Dissertation Writers: Inspiring Dog Care
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 estimate the following staffing needs:
A groomer who will be paid $12/hour and work 40 hours a week
A day care attendant who will be paid $9/hour and will work 22 eight-hour days per month
A receptionist who will be paid $8.50/hour and work 30 hours a week
A kennel attendant who will be paid $11.50/hour and will work 22 eight-hour days per month 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
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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 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:
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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
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-of- goods-manufactured statement can be found in the “COS Schedule” tab of your workbook. For your variance analysis, use the following financial data:
Direct Materials/Labor Original Projection Actual
Shampoo 1000 ounces ($2/groom) 1200 ounces ($3/groom)
Grooming Labor 1.5 hrs/groom @ $12 2.25 hrs/groom @ $11.50
