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1.On April 17, 2013, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four year period. During 2013, 240,000 tons were extracted and sold immediately.Required:1. Calculate depletion for 2013.2. Discuss the accounting treatment of the depletion calculated in requirement 1.
How can the mathematical equation for break-even sales show both sales units and sales dollars? How do the formulas differ for contribution margin per unit and contribution margin ratio?
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