Cost-Benefit Analysis
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1 -Benefit Analysis New product To receive federal funds, after-school programs must include two of the four components---(1) milk, (2) juice, fruit, or vegetable, (3) meat/meat alternates, and (4) bread/bread alternates, or cereal. The federal government contributes for each student type; $.78 free, $.39 reduced, and $.07 paid. During January 2013, Park City School District s Afterschool Program received $1, from the federal government and spent $1, for labor and food costs. Total net income for the afterschool program in January 2013 is $ Park City School District is able to use this extra income to support future expenses for not only the after-school program but also the breakfast/lunch program. Although the afterschool program is at a positive break-even point, snack combinations that meet requirements and can be purchased at a lower price than the current after-school menu are recommended in the following section. Following these recommendations will allow the nutrition department to save extra income for future expenses. Current s The two highest snack combinations for the after-school snack menu are: Juice & Bug Bites--$.49 Fruit fresh/canned & Scooby--$.51 The current price for all snack combinations average $.46. This average can be lower by replacing the two highest snack combinations with lower cost snack combinations. Projected s Possible snack combinations that can be used to replace the current two highest snack combinations are listed below: Milk & Graham Crackers--$0.27 Milk & Fruit bar--$0.29 Milk & granola bar--$0.45 Saltine crackers & string cheese--$0.43 Fruit snacks & Juice--$0.44 Fruit snacks & Yogurt--$0.46 Teddy Grams & Juice--$0.42 Teddy Grams & Yogurt--$0.41 Teddy Grams & Canned Fruit--$0.45
2 These snack combinations average $.40. The next section describes the projected savings that Park City could incur if they made the adjustments. Projected Savings If Park City School District replaced their two highest costing snack combinations with any two of the snack combinations recommended above the most they would save is $255.95/month or ~$3,071.40/year. The least they could save is $76.79/month or $1,842.96/year. Summary of vs. Benefit of Proposed Product By replacing the two highest snack combinations with the two of the recommended snack combinations, Park City could save between $1, $3,071.40/year. I would recommend Park City give a survey to the students in the after-school program and let them vote on which of the new snack combinations, recommended above under projected costs, they like best. Then, change the afterschool menu based on results. Appendix This section includes three pages of budget analysis using Excel. The first shows how much expense and income the after-school program generated in January The second shows the least projected savings mentioned in the projected savings section. The third shows the most projected savings.
3 Analysis for Afterschool Snacks for January 2013 Expense Category Jeremy McPolin Parley Trailside Totals Current Snack Item Juice & Bug Bites $ $ $ $ $ Fruit fresh/canned & Scooby $ $ $ $ $ Low Snack Combination $ - $ - $ - $ - $ - Low Snack Combination $ - $ - $ - $ - $ - Low Snack Combination $ - $ - $ - $ - $ - Low Snack Combination $ - $ - $ - $ - $ - Totals $ $ $ $ $ 1, Current Snack Combo String cheese & Big Bites/Scooby 0.41 Income Category Jeremy McPolin Parley Trailside Totals Fruit fresh/canned & Scooby 0.51 Yogurt and Bug bites/scooby snacks 0.47 Low Snack Item Option Net income: $ Fruit bars 0.26 Saltine crackers 0.09 Fruit hot colors, roll up 0.23 Graham crackers 0.07 Granola bar 0.25 Mini bagel 0.10 Type of Student Jeremy McPolin Parley Trailside Paid Low Snack Combo Option Reduced Milk & Graham Crackers 0.27 Free Saltine crackers & string cheese 0.29 Total Milk & granola bar 0.45
4 Analysis for Afterschool Snacks for January Projected Savings--Least Amount Expense Category Jeremy McPolin Parley Trailside Totals Current Snack Item Juice & Bug Bites $ - $ - $ - $ - $ - Fruit fresh/canned & Scooby $ - $ - $ - $ - $ - Replacement (Fruit and Teddy Grams) $ $ $ $ $ Replacement (Fruit bar and Milk) $ $ $ $ $ Totals $ $ $ $ $ 1, Income Category Jeremy McPolin Parley Trailside Totals Current Snack Combo String cheese & Big Bites/Scooby 0.41 Fruit fresh/canned & Scooby 0.51 Net income: $ Low Snack Item Option Type of Student Jeremy McPolin Parley Trailside Fruit bars 0.26 Paid Saltine crackers 0.09 Reduced Fruit hot colors, roll up 0.23 Free Graham crackers 0.07 Total Granola bar 0.25 Mini bagel 0.10 Low Snack Combo Option Milk & Graham Crackers 0.27 Saltine crackers & string cheese 0.29 Milk & granola bar 0.45
5 Analysis for Afterschool Snacks for January Projected Savings--Most Expense Category Jeremy McPolin Parley Trailside Totals Current Snack Item Juice & Bug Bites $ - $ - $ - $ - $ - Fruit fresh/canned & Scooby $ - $ - $ - $ - $ - Low Snack (Teddy Grams and Juice) $ $ $ $ $ Low Snack (Milk and Gram Crackers) $ $ $ $ $ Totals $ $ $ $ $ 1, Current Snack Combo Income Category Jeremy McPolin Parley Trailside Totals String cheese & Big Bites/Scooby 0.41 Fruit fresh/canned & Scooby 0.51 Low Snack Item Option Net income: $ Fruit bars 0.26 Saltine crackers 0.09 Type of Student Jeremy McPolin Parley Trailside Fruit hot colors, roll up 0.23 Paid Graham crackers 0.07 Reduced Granola bar 0.25 Free Mini bagel 0.10 Total Low Snack Combo Option Milk & Graham Crackers 0.27 Saltine crackers & string cheese 0.29 Milk & granola bar 0.45
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