Cookie Fundraiser Budge Analysis

BETH, IF YOU CHANGE THIS, CHANGE THE ON-LINE CLASS AND THE COURSE PACKET Cookie Fundraiser Mini Practice Set

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 $9.50. The packaging

material costs $.12 (12 cents) per package. You pay the regular kitchen staff a direct labor cost for

mixing and baking at $13.00 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 $80 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. This analysis is for the use of the current

club faculty advisor and also the next year’s bake sale manager. This analysis is done

separately by each student. Don’t miss points by forgetting your audience.

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. (If you would like, you can work in groups up to 3 students, but

each person must submit a separate packet and complete their own 2-3 page analysis.)

 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. Break down your

conversions from recipe quantities to purchased quantities using clear steps showing each step

in your calculation.

 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. If you want a word count, the analysis should have at least 1,000

words.

 Have fun, be creative and include any additional items that might make your project

outstanding.

 The grading rubric is attached to this assignment in Canvas. Study it carefully to see how points

are assigned to each of the components of the project.

Acknowledgements: this assignment was originally written by Miller and Barritt; adapted by LaRee Hartmen and finally

adapted by Elizabeth Dunn for Managerial Accounting.