Question 2 Tom Ltd and Perry Ltd are two small publishing houses that are considering leasing printing equipment together. The companies estimated that, in order to meet production, Tom Ltd needs the equipment for 250 hours and Perry Ltd needs it for 450 hours. If each company rents the equipment on its own, the fee will be $65 per hour of usage. If they rent the equipment together, the fee will decrease to $45 per hour of usage. 4 Cost h of studer (a) Calculate Tom Ltd's and Perry Ltd's respective share of fees under the stand-alone (b) Calculate Tom Ltd's and Perry Ltd's respective share of fees using the incremental (c) Calculate Tom Ltd's and Perry Ltd's respective share of fees using the incremental Required: cost-allocation method. cost-allocation method. Assume Tom Ltd to be the primary party cost-allocation method. Assume Perry Ltd to be the primary party (2+2+2 6 marks) QUESTION 3 Cape Town Minerals (CTM) owns the rights to extract minerals from beach sands. CTM (a) Payment to a mining subcontractor who charges $80 per tonne of beach sand (b) Payment of a government mining and environmental tax of $50 per tonne of beach (c) Payment to a barge operator. This operator charges $150,000 per month to has costs in three areas mined and returned to the beach (after being processed on the mainland to extract three minerals: ilmenite, rutile and zircon) ative com sand mined. transport each batch of beach sand- up to 100 tonnes per batch per day-to the mainland and then return to Fraser Island (ie., 0 100 tonnes per day $150,000 per month; 101-200 tonnes per day per day $450,000) $300,000 per month, and 201-300 tonnes Each barge operates 25 days per month. The $150,000 monthly charge must be paid even if fewer than 100 tonnes are transported on any day and even if CTM requires fewer than 25 days of barge transportation in that month. Required (a) What is the variable cost per tonne of beach sand mined? (b) What is the fixed cost per to CTM per month? (c) What is the unit cost per tonne of beach sand mined if 99 tonnes are mined each day