Tostitos is the largest manufacturer of corn tortilla chips…
Tostitos is the largest manufacturer of corn tortilla chips in the United States. Due to a major drought in the midwest region of the country, the price of corn on the Chicago Board of Trade commodity market has increased 25% over the past month. In turn, this has caused a major increase in the expenses for Tostitos, namely the cost of goods sold (i.e. = raw corn). Which Quadrant of Risk does the above scenario fall under?
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