BHP Billiton is the world's largest mining firm. BHP expects to produce 2.00 billion pounds of copper next year, with
Posted: Mon Apr 25, 2022 8:51 am
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 price?
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?
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 price?
The operating profit when the price per pound is $1.05 will
be $____ billion. (Round to two decimal places.)
*Eg. $0.45 billion, $2.42 billion, etc.*
The operating profit when the price per pound is $1.40 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.75 will
be $____ billion. (Round to two decimal places.)
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?
The operating profit when the price per pound is $1.35 will
be $____ billion. (Round to two decimal places.)
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?
The operating profit when the price per pound is $1.05 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.40 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.75 will
be $____ billion. (Round to two decimal places.)
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 price?
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?
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 price?
The operating profit when the price per pound is $1.05 will
be $____ billion. (Round to two decimal places.)
*Eg. $0.45 billion, $2.42 billion, etc.*
The operating profit when the price per pound is $1.40 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.75 will
be $____ billion. (Round to two decimal places.)
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?
The operating profit when the price per pound is $1.35 will
be $____ billion. (Round to two decimal places.)
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?
The operating profit when the price per pound is $1.05 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.40 will
be $____ billion. (Round to two decimal places.)
The operating profit when the price per pound is $1.75 will
be $____ billion. (Round to two decimal places.)