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You will recall the plight of Samuel Hilaire, the peanut farmer in Haiti (in our case: Can management accounting help aid associations make tough choices

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You will recall the plight of Samuel Hilaire, the peanut farmer in Haiti (in our case: Can management accounting help aid associations make tough choices in Haiti?). During the semester, we had assembled the following information regarding Samuel's rather simple operational setting: 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 Samuel's 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 Samuel's new circumstances and expectations, which of the following best represents the contribution margin per unit, kgs required to achieve Samuel's desired annual profit, sacks required to achieve Samuel's desired annual profit, and an indication as to whether this is achievable (in terms of production capacity) for Samuel

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