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

question 28

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 the going price next year is $1.40 per pound,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:

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