Samuel has received some good news. A group of accounting students from Australia has been running a fundraising campaign to raise funds to assist Samuel with his operations. Sufficient money has been raised to allow Samuel to acquire the tractor he needs and the required rent on an additional 2 acres of land adjacent to his current land [for five years]. Neither the tractor nor the new land adds to Samuels costs.

Samuel now feels he can ramp-up production and hopefully generate the annual profit he has been hoping for. He estimates that he will need more labor to work the additional acreage. Labor rates have increased recently which will result in an increase in the variable cost per unit of $0.1767. An additional $200 in fixed costs is anticipated. In some rather good news, Samuel expects the selling price for the next year to be the highest ever at $0.80 per kg of peanuts.

Given the Samuels new circumstances and expectations, which of the following best represents the contribution margin per unit, kgs required to achieve Samuels desired annual profit, sacks required to achieve Samuels desired annual profit, and an indication as to whether this is achievable (in terms of production capacity) for Samuel.

Which option is correct? Please provide workings

\begin{tabular}{|l|l|} \hline Selling price & $0.61 per kg of peanuts \\ \hline Variable cost & $0.3233 per kg of peanuts \\ \hline Current fixed costs of land rental & $1000 per annum \\ \hline Current breakeven production required & 3488kgs or 70 sacks or peanuts \\ \hline Minimum desired profit level & $350 per annum \\ \hline Current [good quality] production capacity & 3000kgs \\ \hline Current available acres & 2 acres \\ \hline \end{tabular} \begin{tabular}{|c|l|l|c|c|} \hline Option & \multicolumn{1}{|c|}{ Contribution margin per kg } & Required kgs to earn $350 profit & Required sacks to earn $350 profit & Capacity to achieve \\ \hline A & $0.30 per kg & 5167kgs & 103 sacks & No \\ \hline B & $0.11 per kg & 12272kgs & 245 sacks & No \\ \hline C & $0.30 per kg & 5167kgs & 103sacks & Yes \\ \hline D & $0.30 per kg & 4500kgs & 90sacks & No \\ \hline E & $0.477 & 3251kgs & 65sacks & Yes \\ \hline \end{tabular} D B A \begin{tabular}{|l|l|} \hline Selling price & $0.61 per kg of peanuts \\ \hline Variable cost & $0.3233 per kg of peanuts \\ \hline Current fixed costs of land rental & $1000 per annum \\ \hline Current breakeven production required & 3488kgs or 70 sacks or peanuts \\ \hline Minimum desired profit level & $350 per annum \\ \hline Current [good quality] production capacity & 3000kgs \\ \hline Current available acres & 2 acres \\ \hline \end{tabular} \begin{tabular}{|c|l|l|c|c|} \hline Option & \multicolumn{1}{|c|}{ Contribution margin per kg } & Required kgs to earn $350 profit & Required sacks to earn $350 profit & Capacity to achieve \\ \hline A & $0.30 per kg & 5167kgs & 103 sacks & No \\ \hline B & $0.11 per kg & 12272kgs & 245 sacks & No \\ \hline C & $0.30 per kg & 5167kgs & 103sacks & Yes \\ \hline D & $0.30 per kg & 4500kgs & 90sacks & No \\ \hline E & $0.477 & 3251kgs & 65sacks & Yes \\ \hline \end{tabular} D B A