The Doodad Company Purchases a Machine for $400,000

question 197

Multiple Choice

The Doodad Company purchases a machine for $400,000.The machine has an estimated residual value of $20,000.The company expects the machine to produce two million units.The machine is used to make 400,000 units during the current period.
-Use the information above to answer the following question.If the units-of-production method is used,the depreciation rate is:

• A) $0.95 per unit.
• B) $0.19 per unit.
• C) $0.05 per unit.
• D) $1.00 per unit.

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Definitions:

Depo-Provera

A contraceptive injection for women that contains the hormone progestin to prevent pregnancy.

Fem Cap

A small, dome-shaped, reusable contraceptive device made of silicone that is inserted into the vagina to cover the cervix and prevent sperm from entering.

Intrauterine Device (IUD)

A form of birth control placed inside the uterus to prevent pregnancy by altering the environment for sperm and eggs.

STIs

Sexually Transmitted Infections, a term encompassing various infectious diseases spread through sexual contact.