Use the Following to Answer Question 125 -(Table: the Cost and Benefit of Producing Gadgets)Use Table: the The Cost

question 20

Multiple Choice

Use the following to answer question 125: $$\begin{array}{l}\text { Table: The Cost and Benefit of Producing Gadgets }\\\begin{array} { c l l } \hline \text { Quantity of Gadgets } & \text { Total Cost } & \text { Total Revenue } \\\hline 0 & \$ 100 & \$ 0 \\1 & 105 & 200 \\2 & 110 & 215 \\3 & 115 & 225 \\4 & 120 & 230 \\5 & 125 & 233 \\\hline\end{array}\end{array}$$
-(Table: The Cost and Benefit of Producing Gadgets) Use Table: The Cost and Benefit of Producing Gadgets.How many gadgets should you produce?

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Useful Life

The estimated duration an asset is expected to be functional and valuable for, used for depreciation calculations.

Salvage Value

The predicted resale value of an asset at the close of its effective life.

Straight-line Method

A depreciation calculation technique that evenly spreads the loss in value of an asset across each year of its expected useful lifespan.

Double-declining-balance Method

A depreciation approach that speeds up the process by using a rate twice that of the typical straight-line method.