ArcelorMittal Dofasco can buy iron ore pellets from Minnesota at US$85 per short ton (2000 pounds) or from Labrador at C$105 per metric ton (1000 kilograms). Which source is more expensive? How much more expensive is it in C$ per metric ton? Note that 1 pound = 0.4536 kg.

If the necessary exchange rates are not given in problem, use the exchange rates in Table 3.2.

Table 3.2.

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Per C$ Per US$ Per € Per Y Per £ Canadian dollar (C$) 1.3083 1.4446 0.01084 2.0203 U.S. dollar (US$) 0.7644 1.1042 0.008286 1.5442 0.6922 0.9056 0.007504 1.3985 Euro (€) Japaense yen (V) British pound (£) 92.2509 120.6919 133.2657 186.3745 0.4950 0.6476 0.7150 0.005366