Question

I am not sure how to approach this. You are managing a bake sale for a club at your school. It’s being held each weekend in the fall that the football team has a home game. This year, there will be five home games. The club sells cookies in packages of two dozen. The selling price per package is $8.65. The packaging material costs $.11 (11 cents) per package. You pay the regular kitchen staff a direct labor cost for mixing and baking at $10.50 per hour. Baking utensils and supplies for the entire season will cost $500 (excluding the direct costs of cookies) . Before each game, the cookies are prepared in a school kitchen for a fixed rental fee of $90 per session and clean-up labor is paid a fixed total of $50 per session. You estimate that 500 packages of cookies will be baked for each sale and that 96% of them will be sold. Alumni volunteers, who receive no compensation, sell half of the packages and students, who receive a commission of $.15 per package, sell the other half. You plan to run an advertisement in the school newspaper before all five games and each advertisement costs $200. You are to: 1) Go to the internet and find a cookie recipe. Your recipe must have at least 5 ingredients. 2) Research the prices of the cookie ingredients at a local supermarket, warehouse or online grocer. Do NOT change the recipe. To convert the recipe quantities, you can use an online conversion calculator. There are several available so use your favorite search engine. 3) Develop a budget for the five bake sales. Give the amounts per each sale and the budget in total. You are free to develop any format for the budget. I encourage you to develop a format that is most useful to you. Make sure your budget is complete in that it includes both expected income and expected expenses with a bottom line expected net income. Use your imagination when it comes to the direct labor calculation. Your kitchen can be large and full of commercial ovens. 4) Analyze the club’s fundraising effort in written format. 5) Make suggestions for next year’s bake sale manager, including those suggestions that would improve the bottom line with approximations of how much the bottom line will improve.
You will submit in your packet:  Title page with name of student who completed the analysis. Be sure to acknowledge those students who you worked with.  Your recipe including quantity and cost of the ingredients along with the source of the prices and directions for baking.  Your budget. Be sure that all items are labeled to make it understandable.  Your analysis, unique to each student, which should be at 2-3 pages in length. You might begin with an overview of the project, then analyze the results, and finally suggest alternative courses of action that would improve on the success of the project. Write as if you are providing this packet to your club faculty advisor and also to the next year’s bake sale manager. Specifically use their names in the report.  Have fun, be creative and include any additional items.

Answer 1

This is a huge case project. Some of things are personalized so I request you to proof read it and personalize as per your requirement. I’m answering this case in the points that are mentioned and it goes as below:

1. Go to the internet and find a cookie recipe. Your recipe must have at least 5 ingredients.

Recipe of plain cookie, taken from https://www.myrecipes.com/recipe/5-ingredient-sugar-cookies

• 1/2 cup butter, softened
• 3 cups powdered sugar, divided
• 1 large egg
• 1 1/2 teaspoons vanilla extract
• 1 1/2 cups all-purpose flour

The ingredients are for 30 cookies but we need them for 60000 cookies, so we multiply it by 2000.

So revised ingredient

Butter 625 kg or 22046 oz

Egg 3000

Sugar 6000 cups

Vanila extract 5000 tsp

All purpose flour 1125 kg or 39683 oz

Method

Step 1

Beat butter and 1 cup sugar at medium speed with an electric mixer until creamy. Add egg and vanilla; beat 30 seconds. Add flour, beating at low speed until combined.

Step 2

Place dough on lightly floured parchment paper, and roll to 1/4-inch thickness. Transfer rolled dough and parchment paper to a baking sheet, and chill 15 minutes.

Step 3

Preheat oven to 375°. Cut dough with lightly floured 2-inch cutters; place 1/2 inch apart on 2 parchment paper-lined baking sheets. Reroll scraps, and repeat process.

Step 4

Bake, in batches, at 375° for 8 to 10 minutes or until golden brown around edges. Cool completely on a wire rack (about 30 minutes).

Step 5

Whisk together 2 1/2 Tbsp. water and remaining 2 cups powdered sugar.

2) Research the prices of the cookie ingredients at a local supermarket, warehouse or online grocer. Do NOT change the recipe. To convert the recipe quantities, you can use an online conversion calculator. There are several available so use your favorite search engine.

I’ve researched the price from walmart online store.

For butter the total price would be $4464 for 22046oz

For egg the total price would be $833 for 3000 eggs

For vanilla essence the total price would be $1146 for 5000 tsp

For sugar the total price would be $1376 for 6000 cups

For flour the total price would be $1727 for 39683oz

3) Develop a budget for the five bake sales.

The total revenue from sale of 2,400 package is $ 20760

Here is the list of expenses for 2500 packages.

• Total expenses of ingredients $ 9546
• Packing expenses $ 275
• Kitchen staff $ 630 ( assuming our kitchen is huge and our kitchen staff spends 12 hours per season to bake cookies i.e. 60 hours in total
• Baking utensils rent $2500
• Space rental $1350 (assuming that work is done in 4 hours in each session)
• Clean up cost $750
• Advertisement $1000
• Commission $36

The total of all expenses is $16087

Expected income can be $4673 or $4500 if we take extreme situation into account.

4) Analyze the club’s fundraising effort in written format

I don’t know what to analyze since there are no fundraising effort mentioned.

5) Make suggestions for next year’s bake sale manager, including those suggestions that would improve the bottom line with approximations of how much the bottom line will improve.

The sales manager next year can take the following points into account:

• The shifts in which kitchen staff works can be increased to 6 hours this would reduce the kitchen expenses and increase the revenue by $1000 (approx.)
• Reduce the cost of advertisement by half; this would increase the revenue by 500
• Order in bulk, so that bulk discount can be availed
• Invite more volunteers rather than paying commission to students.