Use the Following Information to Answer the Question(s)below

question 36

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper expects to produce 500 million pounds of copper next year,with production costs of $0.75 per pound.Depending upon the economic conditions over the next year,d'Anconia Copper expects the price of copper next year to be either $1.40,$1.50,or $1.60 per pound,with each outcome being equally likely.d'Anconia Copper expects to sell all of its copper at the going price.
-If d'Anconia Copper enters into a contract to supply copper to end users at an average price of $1.48 per pound,then d'Anconia Copper's operating profit next year will be closest to:

• A)$325 million.
• B)$365 million.
• C)$375 million.
• D)$425 million.

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Definitions:

Physiological Reaction

A bodily response to a stimulus, such as an increase in heart rate, sweating, or the release of adrenaline, often not under conscious control and indicative of physiological processes.

Arousal Level

The physiological and psychological state of being awoken or stimulated to action.

Self-Discrepancy Theory

The theory that people feel anxiety when they fall short of how they ought to be but feel sad when they fall short of how they ideally want to be.

Ideal Self

A person's conception of how they would like to be, embodying their goals, aspirations, and unique potential.