Heinz Uses 2000 Tons of Corn Syrup Each Year as an Ingredient

question 13

Multiple Choice

Heinz uses 2000 tons of corn syrup each year as an ingredient in its tomato ketchup products.Heinz is concerned about the increase in prices of corn-based products and purchases a fixed-price contract to buy corn syrup at $10,000 per ton.What is the impact on earnings before taxes as opposed to no hedging if the price of corn is $10,000 per ton over the next year?

• A)+$5 million
• B)-$5 million
• C)$0
• D)-$10 million
• E)+$10 million

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Definitions:

Antennas

Devices designed to transmit or receive radio waves or other forms of electromagnetic radiation, widely used in telecommunication.

QR Codes

Quick Response Codes; machine-readable optical labels that contain information about the item to which they are attached, often used to store URLs or other data accessible by scanning with a mobile device.

Bar Codes

A series of lines of varying widths and spacings which represent data, scanned and read to identify a product or object.

Customization

The process of modifying products, services, or systems to meet specific customer needs or preferences.