1. Calculate the total cost for next February when 2,100 tons are expected to be extracted.

2. Given the current scenario at what number of tons can cost-effectiveness be achieved?

Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,800 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefit:s Royalties Trucking and hauling $44,000 13,000 387,000 121,000 380, 385 "Incurred only in December. Peak activity of 3,100 tons occurred in June, resulting in mining labor/fringe benefit costs of $666,500, royalties of $173,000, and trucking and hauling outlays of $495,385. The trucking and hauling outlays exhibit the following behavior: Less than 1,800 tons From 1,800-2,299 tons From 2,300-2,799 tons From 2,800-3,299 tons 5322,885 380,385 437,885 495, 385 Antioch uses the high-low method to analyze costs