The Council oversaw the following fundraising activities: Milk Days During the f
ID: 2820466 • Letter: T
Question
The Council oversaw the following fundraising activities:
Milk Days During the first week of school, the Council offered a daily milk program to the School’s 620 students, whereby a student would receive a 250 ml carton of 2% white milk or 1% chocolate milk at lunch time on each school day. The Council negotiated a purchase price of $0.40 per carton with a local grocery store, Bruno’s Food Port, based on an expected enrollment of 300 students in the milk program. Parents had to sign up their students for the entire school year at a weekly price of $2.50 for 40 weeks (which takes into account PD days and March Break). The payment for the entire school year was submitted with a sign-up form and dropped off at the School’s main office. Based on the sign-up forms collected, 60% of the School’s students enrolled in the program. The office remitted all of the collected funds to the Treasurer. A cheque was issued to Bruno’s Food Port on October 1, 2016 to pay the entire purchase price for the school year.
Pizza Lunches Beginning in September, the Council offered pizza lunches to students on the first Tuesday of each month and on the last Friday of each month. Students could choose from the following options:
1 slice for $2.00, either cheese or pepperoni
2 slices for $3.50, either cheese or pepperoni
The Council initially estimated that 40% of students would participate on each pizza day, of which 50% of students would choose the one slice option. The Council planned to order extra-large pizzas with 10 slices at a cost of $16 perpizza from Antonello’s Pizzeria. Unfortunately, Antonello’s Pizzeria went out of business before the first pizzaday and the Council instead purchased from Little Brutus’s at a cost of $17 per10 slice pizza. Pizza slices were distributed at a central location in the school. The cash was collected by Council volunteers on each pizza day and then remitted to the Treasurer. A cheque for the pizzas ordered was issued to LittleBrutus’s on each pizza day. In December, a Council volunteer tallied all the orders and noted that a total of 550 pizzas were ordered from September to December. On average, 420 students had participated in the program on each pizza day, and 60% had chosen the one slice option. She commented that there were often extra slices at the end of pizza day that were not sold because the right number of cheese or pepperoni pizzas were not ordered.
Pumpkin Drive The Council partnered with a local farm, Chudleigh’s Farm (CF), to sell pumpkinsin the month of October. Students could sell large pumpkins for $7, medium pumpkins for $5 and small pumpkins for $3. CF agreed to charge the Council $5 for large pumpkins, $4 for medium pumpkins and $3 for small pumpkins. Students accepted cash for payment and then remitted the amount to their teacher with their order form. Each teacher submitted a summary order form and all of the monies collected were remitted to the Treasurer. At the time of invoicing, CF decided to donate the small pumpkins at no cost because the School’s students had sold so many large and medium pumpkins. Based on the invoice received from CF, the number of pumpkins delivered to the School was as follows:
Large – 870
Medium – 615
Small – 375
A cheque was issued to CF on December 1, 2016.
Garbage Bag Sales In November, the Council held a garbage bag fundraising campaign through a program with Poly Bag Central (PBC). Each student was given a brochure from which consumers could select garbage bag products to purchase. Students collected cash at the time of ordering and then submitted the funds with their order envelope to the School’s main office. Once all the forms were collected, the Council sent theorder forms to PBC and the Treasurer collected the cash. Teachers collected envelopes from 470 students and a total of 1,830 rolls were sold. A cheque was issued to PBC on December 15, 2016 to pay for the rolls sold.
The following items were offered in the brochure:
Student Pictures
In early December, Picture Perfect Imaging (PPC) visited the School and took pictures of each of the 620 students. Parents were offered the following picture packages for purchase:
Package A – $45
Package B – $38
Package C – $30
Package D – $25
Package E – $10
Each homeroom teacher collected the cash payments from the students and then submitted a summary form of packages ordered and the money collected to the Treasurer. The agreement with PPC required that the School submit a payment equal to 95% of total sales and keep a 5% commission. However, if more than 90% of students purchased pictures, the School would only have to submit 80% of total sales and the commission increased to 20%.
Based on the summary forms prepared by the teachers, the following numbers of packages were purchased:
Package A – 190
Package B – 145
Package C – 80
Package D – 120
Package E – 40
In late December, a cheque was issued to PPC to pay for the packages purchased.
Required:
The account balance was $11,400 at the end of the year but the statement of fundraising efforts shows a net profit of $12,442. Please redraft the Statement of Fundraising Activities for any errors or concerns you find.
Number of Bags per Roll Item Description Dimensions Selling Price Cost per Roll* per Roll $12 $12 $12 (Width x Length) Compostable Bags 41 cm x 42 cm Kitchen Bags Large Garbage Bags76 cm x 83 cm 30 50 20 $7.60 $7.60 $7.60 50 cm x 53 cmExplanation / Answer
Note:1
Milk Days: 40*2.5*300= $30,000
Note-2: Pizza Lunches
420 Students On an average participated on 8 Pizza days hence the Pizza Lunches revenue is
420*60%*8*2.=$4,032
420*40%*8*3.5=$4,704
Total Pizza lunches revenue= $8,736
Note: 3
Pumpkin Drive Revenue=
870*7=$6,090
615*5=$3,075
375*3=$1125
Total Revenue=$10,290
Note:4 Garbage Bag Sales
1,830*12=$21,960
Note 5 Student Pictures
Package A= 190*45=$8,550
Package B=145*38=$5,510
Package C=80*30=$2,400
Package D=120*25=$3,000
Package E=40*10=$400
Total Revenue= $19,860
Fund Raising Revenue= $30,000+$8,736+$10,290+$21,960+$19,860
=$90,846
Fund Raising Expenses
Note: 6
Payment to Bruno's Food Port
300*40*.4*5=$24,000
Note:7
Payment to Brutu;s Pizzeria=550*$17=$9,350
Note-8 Payment to Chudleigh's Farm
870*$5=$4,350
615*$4=$2,460
Total Payment= $6,810
Note 9
Payment to Polybag Central =1830*7.60=$13,908
Note 10 Payment to Picture Perfect image
As more than 90% pictures sold only 80% needs to be remitted $19,860*80%=$15,888
Total Fund Raising expense= $24,000+$9,350+$6,810+$13,908+$15,888
=$69,956
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