BHP Billiton is the world's largest mining firm. BHP expects to
produce 2.00 billion pounds of copper next year, with a production
cost of $0.95 per pound.
a. What will be BHP's operating profit from copper next year if
the price of copper is $1.05, $1.40, or $1.75 per pound, and the
firm plans to sell all of its copper next year at the going
pice?
b. What will be BHP's operating profit from copper next year if
the firm enters into a contract to supply copper to end users at an
average price of $1.35 per pound?
c. What will be BHP's operating profit from copper next year if
copper prices are described as in part (a), and the firm enters
into supply contracts as in part (b) for only 50% of its total
output?
BHP Billiton is the world's largest mining firm. BHP expects to produce 2.00 billion pounds of copper next year, with
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answerhappygod
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