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b 2013 - MFK Haiti's New Factory htt 5: www. outubecom watch?v=2f3 L2nR2cY&t=115s Questions for Anakin 1. What drives local Haitian peanuts to be more

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b 2013 - MFK Haiti's New Factory htt 5: www. outubecom watch?v=2f3 L2nR2cY&t=115s Questions for Anakin 1. What drives local Haitian peanuts to be more expensive than those produced in foreign countries? Consider how operating leverage and economies of scale affect the cost per kilogram. 2. a. How could cost accounting information, such as breakeven and target prot analysis, help Haitian farmers like Samuel Hilaire be more profitable? i- Compile a list of the costvolumeprofit data for 2013 for Samuel Hilaire's operations. ii. Using this data, calculate the variable cost for 1 kilogram of peanuts for Samuel Hilaire. You should do this manually first; and then use the spreadsheet model provided to calculate and check your manual calculation. iii. How many:r kilograms of peanuts does Samuel need to sell to break even in 2014 {assume same cost structure as 2013}? iv. How many does he need to sell to make a profit of $350 in 2014, the average annual salary in Haitians living in rural areas? b. Assume Samuel can purchase a $2,000 tractor with a 10year life. If the variable cost per kg would decrease by 25%, how many acres of peanuts would Samuel need to farm to justify the purchase of the tractor

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