To hedge its profits from fluctuations in coffee prices, Financial Management

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To hedge its profits from fluctuations in coffee prices

Carlos G.M coffee shop consumes 2000 million pounds of coffee beans per year. As the price of coffee rises, Carlos G.M business expects to pass a long 45% of the cost to its consumers through higher prices per cup of coffee. To hedge its profits from fluctuations in coffee prices, Carlos G.M. should lock in the price of how many pounds of coffee beans using supply contracts?

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Financial Management: To hedge its profits from fluctuations in coffee prices

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