Required 1. What is the variable cost per ton of beach sand mined? What is the fixed cost to CM per month?

2-22 Variable costs and fixed costs. Consolidated Minerals (CM) owns the rights to extract minerals

from beach sands on Fraser Island. CM has costs in three areas:

a. Payment to a mining subcontractor who charges $80 per ton of beach sand mined and returned to the

beach (after being processed on the mainland to extract three minerals: ilmenite, rutile, and zircon).

b. Payment of a government mining and environmental tax of $50 per ton of beach sand mined.

c. Payment to a barge operator. This operator charges $150,000 per month to transport each batch of

beach sand