The Anaconda Mining Company currently is operating at less than 5096 of practical capacity. The management of the oompany expects sales to drop below the present level of 15,000 tonnes of are per month very soon. The selling price per tonne of ore is $2. and the variable cost per tonne is $1. Fixed costs per month total $15,000. Management is concerned that a further drop in sales volume will generate a loss and, accordingly. is considering the temporary suspension of operations until demand in the metals markets returns to normal levels and prices rebound. Management has implemented a cost reduction program over the past year that has been successful in reducing costs. Nevertheless, suspension of operations appears to be the only viable alternative. Management estimates that suspension of operations would reduce xed costs from $15,000 to $5.000 per month. Several of the Company's largest customers have told Anaconda management they depend on receiving Anaconda's ore each month and they would have to close down their companies ifAnaoonda suspends its operations. Required: at Why does management estimate that fixed oosts will persist at $5,000 per month although the mine is temporarily closed? {2 marks} b} Based on the fixed cost data. at what sales volume should management suspend operations at the mine given the data provided? (2 marks] :1 Based on the feedback from several of the largest customers what do you recommend Anaconda's management do\"?' (3 marks}