Prepare a business report for Christa. Discuss all relevant issues, including pros and cons of each course of action. Outline any questions/inquiries which should be directed to Christa and why the information is important to certain decisions.

Christa Carson is the new Chief Financial Officer (CFO) of Carson Mining. Her father, Grant, and uncle, Enzo, founded the company fifty years ago. Since Grant's death twelve years ago, Enzo had been the company's CEO and things had been run largely through his vision. Unfortunately, the company had run into troubles with failed projects and low commodity prices.

Last year, Enzo had succumbed to a lengthy bout with cancer and his son Harrison had taken over as the company's Chief Executive Officer. Christa had been the VP of Finance and was promoted to the CFO role. Neither Harrison nor Christa come from a strictly accounting background, so they have been learning a lot about numbers on the job.

Christa has been looking through the company's current projects and has found two major mining ventures which account for nearly all of the firm's cashflows. She wants to make a budgeted income statement for each project, as well as one for the firm. Budgeting hasn't been a regular practice at Carson Mining, so Christa is largely starting from scratch. Here are some numbers from last year:

Primavera Lama - Copper mine in Chile Sales Revenues $741,000 Copper production in pounds 260,000 Expected growth (in pounds) in copper production, year over year * 2.10% Equipment rental expense * $180,000 Salary expense * * * $355,000 Other operating costs * ** * $67,000 Jacobston - Silver mine in Yukon Sales Revenues $1,992,000 Silver production in ounces 80,000 Expected growth (in ounces) in silver production, year over year * -4.70% Equipment rental expense $296,000 Salary expense * ** $712,000 Other operating costs * *** $102,000 Other expenses - Carson Mining Fixed selling expenses $130,000 Executive salary $750,000 Administrative expenses $145,000 Tax expenses $24,000