Answer:
Depreciable cost per mile= $0.37
Explanation:
Giving the following information:
Purchase price= $38,800
Salvage value= $1,800
Expected to be driven 100,000 miles over its estimated useful life.
<u>To calculate the depreciable cost per mile, we need to use the following formula:</u>
Depreciable cost per mile= (original cost - salvage value)/useful life of production in miles
Depreciable cost per mile= (38,800 - 1,800)/100,000
Depreciable cost per mile= $0.37
Answer:
Option (c) is correct.
Explanation:
The perfectly competitive firm produces at a point where the marginal revenue is equal to the marginal cost because it the profit maximizing point for the competitive firms. Under the perfectly competitive market conditions, the price is determined by the two forces: demand and supply of the goods.
The firms under this market condition, faces a perfectly elastic demand curve which implies that the buyers are free to buy any quantity of goods.
Answer:
The present value for eliminating this cost will be of $1,130,434.78
Explanation:
we solve for the present value of a perpetual annuity as this cost goes forever unless we change into electronically afterwich; they disappear entirely.
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Amount = Principal ( 1 + interest rate) ^ years
$1000 = $600 ( 1 + .07 ) ^ years
$1000 / $600 = 1.07 ^ years
1.66667 = 1.07 ^ years
years = 8
