Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

تمرين 61

All-That-Glitters Mining Company paid $49,250,000 for a parcel of land, including the gold mining rights. In addition, the company spent $7,462,500 to prepare the site for mining operations. It is estimated that the residual value of the asset will be $5,300,000. Geologists estimate the site contains a total of 225,000 ounces of gold.
a. What is the average depletion cost per ounce

b. If 16,200 ounces were mined in the first year of operation, what is the amount of the depletion cost