A company purchased machinery for $660,000 on May 1,2008. It is estimated that it will have a useful life of ten years,salvage value of $45,000, production of 350,000 units, and working hours of 60,000. During 2009 the company uses the machinery 3,050 hours, and the machinery produces 36,000 units.
The straight line is $660,000 -$45,000/10 = $61,500, but how do I set up the units of output for this problem?
2 answers