The charity Support the Children has decided to sell plush polar bear toys as a charity fundraiser with at least $10 profit per polar bear with a selling price of $25. The chair of the Board of Directors for Support the Children has asked you and your volunteer team to decide whether you should make the polar bears or buy them. Assume that ALL the polar bears will be sold.

• Available information:

Required	1xyz polar bear plush toys where "xyz" are the last three numbers of your Fanshawe student id number. Example: student id 1169046; require 1046 polar bears.
Cost of material to make	$6/unit
Storage (all units) for both make and buy option	$500
Volunteer coordination to make polar bears	$1000 (no hourly volunteer labour cost)
Volunteer recognition for making polar bears	$200
Cost to buy (including shipping to your storage location)	$9.50/unit

• Complete the provided Excel template showing detailed calculations for comparison of the "make" decision versus the "buy" decision.
  • Calculate expected total profit for each option and profit per unit for each option.
  • Calculate the Make-or-Buy break-even point - the number of polar bears where the cost to make them is the same as the cost to buy them
  • Calculate a Sales break-even point - if you had decided to buy the polar bears, how many would you have to sell such that the revenue equals the cost?
  • In the Excel template boxes called Assumptions, and Other Considerations - include information that may impact the analysis and the project's success
  • In the Recommendations box, base your recommendation only on the cost analysis
  • Don't forget your APA References.

Answer rating: 100% (QA)

1 Cost Analysis Make Option Cost of materials per unit 6 Storage cost 500 Volunteer coordination cos... View the full answer