Juarez Mining purchased a vein of coal ore for $3,800,000. It is estimated that 30,000,000 tons of ore are available to be extracted. The estimated depletion rate for each ton of ore (rounded to the nearest cent)is:

Question

Quizplus · Accepted Answer

To find the depletion rate per ton of ore, we can divide the total cost of the vein by the estimated amount of ore:

$3,800,000 / 30,000,000 tons = $0.1267 per ton

Rounding this to the nearest cent, we get a depletion rate of $0.13 per ton of ore. Therefore, the best choice is B.

Juarez Mining Purchased a Vein of Coal Ore for $3,800,000