a)Calculate the total cost for next February when 1,450 tons are expected to be extracted. b)If the company plans to extract 1,150 tons, at what number of tons can cost-effectiveness be achieved?

Problem 6-37 Cost Behavior and Analysis: High-Low Method (LO 6-2, 6-4, 6-5) 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 1,150 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling *Incurred only in December. $ 24,500 6,500 172,500 150, 250 177,205 Peak activity of 2,450 tons occurred in June, resulting in mining labor/fringe benefit costs of $367,500, royalties of $286,750, and trucking and hauling outlays of $222,205. The trucking and hauling outlays exhibit the following behavior: Less than 1,150 tons From 1,150-1,649 tons From 1,650-2,149 tons From 2, 150-2,649 tons $154,705 177,205 199,705 222, 205 Antioch uses the high-low method to analyze costs