Billiton is the world's largest mining firm.BHP expects to produce 1 . 5 0 billion pounds of
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Billiton is the world's largest mining firm.BHP expects to produce billion pounds of copper next year, with a production cost of $ per pound.
a What will be BHPs operating profit from copper next year if the price of copper is $$ or $ per pound, and the firm plans to sell all of its copper next year at the going price?
b What will be BHPs operating profit from copper next year if the firm enters into a contract to supply copper to end users at an average price of $ per pound?
c What will be BHPs operating profit from copper next year if copper prices are described as in part a and the firm enters into supply contracts as in part b for only of its total output?
d For each of the situations below, indicate which of the strategies ab or c might be optimal.
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Part
a What will be BHPs operating profit from copper next year if the price of copper is $$ or $ 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 $ will be $enter your response here billion.Round to two decimal places.
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