Deep Pit Mining Mines Three Products

question 125

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 2016 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 2016?

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

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Definitions:

Worker's Productivity

A measure of the efficiency of a worker, calculated by the output produced over a defined period of time relative to the input used.

Virtuality Of Work

The concept refers to the practice of performing work digitally, often remotely, leveraging technology to accomplish tasks outside of a traditional office environment.

Information Technology

The use of computers and software to manage information, including the storage, retrieval, transmission, and manipulation of data.

Electronic Communication

The transmission of information using electronic systems or devices such as email, text messages, or social media platforms.