Maximum Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign over the site to Maximum at no cost. Maximum intends to extract scrap metal at the site for 24 months, and then will clean up the site, return the land to useable condition, and sell it to a developer. Projected costs associated with the project follow:

Fixed Variable
Month 1---24 Metal extraction and processing $2000 per month $80 per month
Month 1---27 Rent on temporary buildings $1000 per month
Administration $6000 per month
Month 25--27 Clean-up $20,000 per month
Land restoration $23,000 total
Cost of selling land $80,000 total

Ignore time value of money.
a. Assuming that Maximum expects to salvage 70,000 tons of metal from the site, what is the total project life cycle cost?
b. Suppose Maximum can sell the metal for SIIO per ton and wants to earn a profit (before taxes) of $30 per ton. At what price must Maximum sell the land at the end of the project to achieve its target profit per ton?
c. Now suppose Maximum can only sell the metal for SIOO per ton and the land at $110,000 less than what you calculated in requirement 2. If Maximum wanted to maintain the same markup percentage on total project life-cycle cost as in requirement 2, by how much would the company have to reduce its total project life-cycle cost?