1.Calculate the total cost for next February when 2,250 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 1,950 tons of ore were extracted Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling $ 48,500 14,500 448,500 102,250 437,370 ncurred only in December Peak activity of 3,250 tons occurred in June, resulting in mining labor/fringe benefit costs of $747,500, royalties of $134,750, and trucking and hauling outlays of $567,370. The trucking and hauling outlays exhibit the following behavior: Less than 1,950 tons From 1,950-2,449 tons From 2,450,-2,949 tons From 2,950-3,449 tons $372,370 437,370 502,370 567,370 Antioch uses the high-low method to analyze costs