Deep Pit Mining Mines Three Products

question 19

Multiple Choice

Deep Pit Mining mines three products. Gold ore sells for $1,000 per ton, variable costs are $600 per ton, and fixed mining costs are $250,000. The segment margin for 2014 was $(100,000) . The management of Deep Pit Mining was considering dropping the mining of gold ore. Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. What were the sales (in tons) for 2014?

• A) 1,000 tons
• B) 375 tons
• C) 250 tons
• D) 200 tons

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Definitions:

Blood Transfusion Reaction

An adverse response by the body to the transfusion of blood products, which can range from mild allergic reactions to severe complications.

Lactated Ringer's

A solution commonly used for fluid and electrolyte replenishment in medical treatment, containing sodium chloride, sodium lactate, potassium chloride, and calcium chloride in water.

D5W

A solution of 5% dextrose (sugar) in water, used as an intravenous fluid.

Hemodialysis

A medical procedure that uses a machine to filter and purify the blood of individuals whose kidneys are not functioning properly.