Changes in the prices of key commodities can have a significant impact on a company’s bottom line. According to a September 27, 2007, article in the Wall Street journal, “Now with oil, gas and electricity prices soaring, companies are beginning to realize that saving energy can translate into dramatic lower costs.” Another Wall Street journal article, dated September 9, 2007, states, “Higher grain prices are taking an increasing financial toll.” Energy is an input into virtually all types of production; corn is an input into the production of beef, chicken, high-fructose corn syrup, and ethanol (the gasoline substitute fuel).
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