Fundraising budget

5 May 2017

Fundraising Budget The project at hand consists of selling cookies for five weekends at the team’s home games. The cookies will be baked in the school cafeteria and there will be paid laborers to clean up the kitchen after completion. The goal is to bake 12,000 cookies in order to have 500 packages consisting of 24 cookies in each package. The way the recipe is, each batch will make about 2 packages which means, at least 250 batches must be made to meet the goal. In order to promote the fundraising sale there will be $200 spent on advertising prior to each sale date.

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The students who sell half of the cookies will receive $. 50 commission per package sold, and the other half will be sold by the alumni who will receive no commission. It is expected that 96% of the packages at each sale will be sold. In analyzing the current budget the cost to make the cookies far outweigh the profits and the fundraiser would land up putting out more money than what they would take in. The fixed costs alone per session are 30% of the sale price. The amount of cookies in each package appears excessive and could be the reason for the low return.

When adding nuts into the cookies it does increase he amount to produce each batch as the nuts are a relatively high dollar amount in large quantities. By leaving the current budget the way it stands there will be a loss of $1 ,067. 50 per session and an overall loss of $5,337. 50 over the course of the 5 sales. In order to reduce costs and maximize profits we propose that in regards to the recipe, the amount of chocolate be reduced to 40z per batch as we have prepared the recipe and find that the amount of chocolate is overwhelming. In regards to fixed costs there are several areas for improvement.

To reduce the amount of the fixed osts we would eliminate the $200 in advertising costs and utilize word of mouth, announcements at other games, social media, and school bulletins to get the word out. We will seek out the benefactors of the fundraising profits to volunteer to clean up after baking thus removing the labor cost of $150 per session. For the packaging we will use alternate packages which will only cost $. 02 per package versus $. 75 per package automatically saving $365 per session. We will reduce the amount of cookies from 24 to 12 in each package

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