An organization has chosen to sell cookie dough for $11.00 per pail as its fund-raiser. For each pail sold, a profit of $4.50 will be earned. Their target audience is family and close friends who they know will be willing to support the fund-raiser by placing an order. The organization has 50 members who will sell the cookie dough. It is assumed that each member has 10 friends and family who can purchase. That means the target audience is 500 people. Of those 500, half will buy one pail and half will buy two pails. When the fund-raiser is over, 750 pails of cookie dough will have been purchased, and profit of $3,375 will have been earned (750 x $4.50 = $3,375.00).
Had the organization sold Jubilations Cheesecakes for $20.00, earning $8.50 profit per cheesecake, the target audience of 500 would have each bought one cheesecake, and a total profit of $4,250 would have been earned (500 x $8.50 = $4,250.00).
That’s 27% more profit!