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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

  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. How could cost accounting information, such as break-even and target profit analysis, help Haitian farmers like Samuel Hilaire be more profitable? (Provide a minimum of three specific examples. If you cant find a number you need, make an assumption based on other case information). Please show your calculations in an Excel sheet.
  3. How could cost accounting information, such as break-even and target profit analysis, help Haitian farmers like Samuel Hilaire be more profitable? (Provide a minimum of three specific examples. If you cant find a number you need, make an assumption based on other case information). Please show your calculations in an Excel sheet.
  4. Most, if not all, other aid associations buy their peanuts from lower cost, higher- quality providers, but there are good reasons for HHC to buy local peanuts even though they cost more. First, do a quantitative cost-benefit analysis of buying local peanuts rather than foreign peanuts. Next, identify other qualitative costs and benefits such as those affecting local farmers, the economic viability of the country, and HHCs relationship with UNICEF
  5. Think about HHCs mission. What types of financial and nonfinancial information would help HHC lower its costs and still achieve its mission? How can cost accounting help HHC meet its objectives? Consider the appropriate costing system, key cost measures, financial and nonfinancial impact of using local peanuts.
  6. What performance measures could HHC provide to UNICEF to help it achieve its goals and increase its purchases of RUTF made with local peanuts? Consider issues such as its mission, performance goals, food quality, and short-term vs. long-term costs.
  7. What do you think is the best way to help the country and people of Haiti? Support your answer. Consider the macroeconomic, microeconomic, and ethical implications of your recommendation. For example, consider here (1) how HHC could persuade UNICEF to think more long term, (2) how HHC could expand its capacity to produce more MM, and (3) how to best reduce the amount of food aid provided to Haiti, and provide more non-food aid.

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