The Doodad Company purchases a machine for $640,000. The machine has an estimated residual value of $60,000. The company expects the machine to produce two million units. The machine is used to make 720,000 units during the current period.
Required information If the units-of-production method is used, the depreciation rate is:
$0.08 per unit.
$0.81 per unit.
$0.29 per unit.
$0.89 per unit.