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:

Cognitive

Relating to cognition, involving the processes of thinking, understanding, learning, and remembering.

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A theory of dreaming that states dreams are created by the higher centers of the cortex to explain the activation by the brain stem of cortical cells during REM sleep periods.

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A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep, often linked to a deficiency in the brain's regulation of wakefulness.

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The loss of muscle function in part of your body, which can be a complete or partial inability to move muscles.