Page 129 Critical thinking
A: Dave's economics of one unit of sale is $5
B: The total fixed cost per month is $6,250
C: His total fixed cost is $75,000
D: His daily gross profit is $15
Page 129 Key concepts
The purpose of depreciation is the amount of value of an assest subtracted each year until the asset value becomes zero.
If you were to depreciate a used car that you bought for $4,000 you would have to save $1,000 dollars a year for 4 years in order to replace it.
A: Dave's economics of one unit of sale is $5
B: The total fixed cost per month is $6,250
C: His total fixed cost is $75,000
D: His daily gross profit is $15
Page 129 Key concepts
The purpose of depreciation is the amount of value of an assest subtracted each year until the asset value becomes zero.
If you were to depreciate a used car that you bought for $4,000 you would have to save $1,000 dollars a year for 4 years in order to replace it.