Most, if not all, other aid associations buy their peanuts from lower-cost, high-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 HHC’s relationship with UNICEF. show your calculations in an Excel sheet.

 

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EXHIBIT 2 (continued) Panel B: HHC's Income Statements for Fiscal Years Ending 9/30/13 and 9/30/14 Support and Fundraising: Contributions Grants Mamba sales Interest income Other income Non-cash contributions Total support and revenue Cost of Goods Sold: Peanuts Other ingredients Direct labor Overhead Cost of Goods Sold Other program expenses Total program expenses Support Expenses General and administrative Fundraising Total support expenses Total expenses Change in net assets Net assets, beginning of period Net assets, end of period 9/30/2013 $525,145 224,689 2,038,990 2,343 18,321 49,500 $2,858,988 $189,296 68,599 767,543 1,140,984 $2,166,422 $32,802 $2,199,224 165,229 155,556 $320,785 $2,520,009 338,979 3,571,052 $3,910,031 Year Ended 9/30/2014 $482,299 111,890 2,119,567 4,432 13,689 35,324 $2,767,201 $201,379 64,408 860,545 1,188,372 $2,314,704 $36,588 $2,351,292 203,128 241,213 $444,341 $2,795,633 (28,432) 3,910,031 $3,881,599 EXHIBIT 2 (continued) Panel B: HHC's Income Statements for Fiscal Years Ending 9/30/13 and 9/30/14 Support and Fundraising: Contributions Grants Mamba sales Interest income Other income Non-cash contributions Total support and revenue Cost of Goods Sold: Peanuts Other ingredients Direct labor Overhead Cost of Goods Sold Other program expenses Total program expenses Support Expenses General and administrative Fundraising Total support expenses Total expenses Change in net assets Net assets, beginning of period Net assets, end of period 9/30/2013 $525,145 224,689 2,038,990 2,343 18,321 49,500 $2,858,988 $189,296 68,599 767,543 1,140,984 $2,166,422 $32,802 $2,199,224 165,229 155,556 $320,785 $2,520,009 338,979 3,571,052 $3,910,031 Year Ended 9/30/2014 $482,299 111,890 2,119,567 4,432 13,689 35,324 $2,767,201 $201,379 64,408 860,545 1,188,372 $2,314,704 $36,588 $2,351,292 203,128 241,213 $444,341 $2,795,633 (28,432) 3,910,031 $3,881,599

Answer rating: 100% (QA)

ANSWER We must contrast the costs and advantages of purchasing domestic vs imported peanuts in order to perform a quantitative costbenefit analysis Th... View the full answer