Using units of production method-calculate depreciation rate

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An injection molder is purchased for $500,000 for a large scale commercial operation. Its expected life is production of 2 million plastic wheels. Its salvage value is $1,000. Using the units of production method, calculate the depreciation rate per unit. A 4 pack of plastic wheels yields a profit of $1.00. Is this enough to offset the depreciation of the machine? (Don't worry about other factors such as tax, operating costs, etc. - just depreciation)..

Reference no: EM13830405

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