Grass Valley Mining Mines Three Products

question 6

Multiple Choice

Grass Valley 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 2011 was $(100,000) .The management of Grass Valley 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 2011?

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

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Definitions:

Grit

The combination of passion and perseverance towards long-term goals, regardless of obstacles or failures.

Perfection

The condition, state, or quality of being free from all flaws or defects; an ideal standard that is often difficult to attain.

Improvement

The process of making something better or more effective through changes or enhancements.

Excellence

The pursuit and attainment of the highest standards in any field, often characterized by remarkable proficiency or achievement.