One approach to forecasting operating profit is to determine a companys average operating profit margin over the previous three years and apply that margin to a forecast of the companys sales. Considering the following company and justify whether the suggested forecasting method would be a reasonable starting point for projecting future operating profit from year 2006 onwards .

BHP - This company is the worlds largest natural resources company, reporting revenue of approximately US$32 billion for the fiscal year ended June 2006. The company mines, processes, and markets coal, copper, nickel, iron, bauxite and silver and also has substantial petroleum operations.