Sylvia Strohm Has Decided to Open Her Own Dog Grooming

Essay

Sylvia Strohm has decided to open her own dog grooming service, Puppy Scrub. She is trying to decide whether she wants to offer services doing mobile grooming or have a set location for the dog grooming business. She has analyzed cost and pricing information for both options and has arrived at the following financial data:
a. What is the total cost per dog-grooming service under the Mobile Option?
b. What is the total cost per dog-grooming service under the Set Location Option?
c. What is the ROI per dog-grooming service under the Mobile Option?
d. What is the ROI per dog-grooming service under the Set Location Option?
e. What is the markup percentage per dog-grooming service under the Mobile Option?
f. What is the markup percentage per dog-grooming service under the Set Location Option?
g. What is the selling price per dog-grooming service under the Mobile Option assuming Sylvia uses a cost-plus pricing model?
h. What is the selling price per dog-grooming service under the Set Location Option assuming Sylvia uses a cost-plus pricing model?
i. Using the current market price per dog-grooming service for the Mobile Option, what is the target cost for Puppy Scrub?
j. Using the current market price per dog-grooming service for the Set Location Option, what is the target cost for Puppy Scrub?
k. Which option would you recommend to Sylvia for opening her new dog-grooming business? Explain why.