From a strictly conceptual perspective, why would any manufacturer consider hedging their variable costs? Answer as if you own the company
What will be an ideal response?
I manufacture a product. Profits come from selling at the market-determined price, which is above my production costs. Without hedging, my profit is influenced by commodity price fluctuations, which are outside the expertise of running my business. Thus, I hedge that risk.
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Milt Alden says that his line workers "know each product like the back of their hands," and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely uses which of the following strategies?
A) cost-plus pricing B) skimming prices C) the experience curve D) break-even pricing E) prestige pricing
Estate planning is the act of planning how your wealth will be allocated before your death
Indicate whether the statement is true or false.