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Here's the scenario: You are managing a bake sale for a club at your school. It's being held each weekend in the fall that the
Here's the scenario: 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 $9.15. The packaging material costs $.17 (17 cents) per package. You pay the regular kitchen staff a direct labor cost for mixing and baking at $15.50 per hour. Baking utensils and supplies for the entire season will cost $610 (excluding the direct costs of cookies). Before each game, the cookies are prepared in a school kitchen for a fixed rental fee of $75 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 $.20 (20 cents) per package, sell the other half. You plan to run an advertisement in the school newspaper before all five games and each advertisement costs $176. - Your complete recipe. - Your budget. - Your analysis
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