Use the information for the question(s) below

Management Feb 19, 2021

Use the information for the question(s) below.

Low-Grade Copper Ore	$640 per Ton
High-Grade Copper Ore	$940 per Ton

Coloma Cooper Incorporated is able to produce $640 worth of copper from one ton of low-grade copper ore. Because of its higher copper content, Coloma can produce $940 worth of copper from one ton of high-grade copper ore.

a) A mining company is offering to trade you 7,250 tons of low-grade copper ore for 5,000 tons of high-grade copper ore. Assuming you currently have 5,000 tons of high-grade ore, what should you do?

b) A company that manufactures copper piping is offering to trade you 5,925 tons of low-grade copper ore for 4,000 tons of high-grade copper ore. Assuming you currently have 4,000 tons of high-grade ore, what are the total benefits and added benefits of taking the trade?

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