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In March 2014, projects to harvest 100 tons of apples in May 2014. In March, May orange futures are selling at $1329 per ton. He wants to lock in this price so he has purchased futures contracts at $1329 per ton. The total cost of the futures contract is $128. (1) What is his total revenue if the May spot price drops to $1208 per ton? (2) What is his total revenue if the May spot price increases to $1375 per ton? Show all work
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