Sunday, 6 November 2011

Economics 1.01

Hannah and Ethan have both been given an "Enterprise" task at school.

They've been given an investment of one pound and they have a school year in which to make that one pound grow.  The profit thus made will benefit a charity of the children's choice.

On Tuesday Ethan has his first Enterprise event in which he can sell things to others in other year groups.

Ethan has decided to follow in my footsteps and bake muffins to sell.  The rules say that the ingredients must be paid for from the initial investment.  So I set about working how cheaply he could make the muffins if necessary.

We opted to make a batch of 36 mini muffins because we knew the children would only be spending very small amounts on items.  I looked up the prices for all ingredients if the cheapest ingredients possible were bought for standard chocolate chip muffins.

So adding the cost of value flour to value eggs, to value this and value that the cost worked out at five pence per mini muffin.  This prompted me to look at how much it costs me to make the normal sized muffins that I bake for school cake sales.

So I added the cost of organic flour to free range eggs to etc.  And I got a bit of a shock.

The school sells my cakes, and all cakes, for 20 pence.  It costs me that to make them.  I might as well just put my hand in my pocket and put the money straight into the PTA coffers.  When I think about the hours I've spent baking for school cake sales it makes me want to spit.


Pete B said...

Still not too late for that career in Finance, y'know...

Ann Cardus said...

Trust me. It wouldn't work. Especially now we've moved to Office 2010. I'm too scared to open Excel.