Answer:
By applying a process of natural hedging, with integrated operational management, logistics and infrastructural investments, Trafigura can diversify its activities and investments so that risks are flattened out. For instance, its investments in storage and shipping capabilities ensure that if the demand for storage is low, the demand for shipping will increase and vice versa.
Furthermore, when Trafigura is not trading actively in the physical commodity, it can use its asset management, logistics, and distribution capabilities and globalized network of subsidiaries and activities to offset the low revenue from trading. These diversified investments and assets, therefore, enhance and complement its various activities so that its risk profile is constantly being managed in a balanced manner without incurring so much risk costs.
Explanation:
Trafigura Group Pte. Ltd. according to sources, is one of the world's "largest independent and integrated commodity traders and a logistics, warehousing, asset management, mining, and energy distribution conglomerate." As a multinational commodity trading company founded in 1993, Trafigura trades in base metals and energy, and is registered and headquartered in Singapore.
The answer is B. Family Members
Answer:
15,684.97 units
Explanation:
Given that
Initial investment = $229,700
Project life = 4 year
Fixed cost = $66,800
Price variable cost = $5.07
Selling price = $12.99
Variable costs = $5.07
The computation of break-even point is shown below:-
Depreciation = Initial investment ÷ Project life
= $229,700 ÷ 4
= $57,425
Break even point = (Fixed cost + Depreciation) ÷ (Price variable cost)
= ($66,800 + $57,425) ÷ ($12.99 - $5.07)
= 15,684.97 units
