Example 1: Pull Company installed a new machine in one of its factories at a cost of $150,000. The machine is depreciated linearly over 10 years with no scrap value. Find an expression for the machine’s book value in the t-th year of use ( 0 < t < 10)
Example 2: A piece of equipment was purchased by a company for $10,000 and is assumed to have a scrap value of $3,000 in 5 years. If its value is depreciated linearly, find the value of the equipment after 3 years (0 < t < 5).
Example 3: A bicycle manufacturer experiences fixed monthly costs of $75,000 and fix costs of $75 per standard model bicycle produced. The bicycles sell for $125 each.
a. What is the cost, revenue and profit functions?
b. What is the break-even point?