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A colliery has the capacity to produce 140 000 run-of-mine tons of anthracite (coal with high carbon content) per month. After washing, about two-thirds of
A colliery has the capacity to produce 140 000 run-of-mine tons of anthracite (coal with high carbon content) per month. After washing, about two-thirds of the run-of-mine tonnage is sold as prime. The colliery is currently producing 100 000 run-of-mine tons per month. The fixed cost of the mine per month are R4,2-m and the variable cost per run-of-mine ton amounts to R45. Assume a selling price of R150 per ton of prime. Calculate the current profit made per month.
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