Question: Scenario 2: The U.S. dollar rises 20%, lowering imported commodity costs but but then the cows come back! With lower inflation, interest rates fall to
Scenario 2: The U.S. dollar rises 20%, lowering imported commodity costs but but then the cows come back! With lower inflation, interest rates fall to 6%. Unfortunately, with so much capacity, the selling price of milk drops to $1.20. Starting from the "Base Case" which Financial Risk Factor had the greatest impact on profit, either positive or negative? Question 5 options:
Selling price per gallon.
Cost of goods sold (owing to foreign currency).
Interest expense
None of the above
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