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

Exercise 66

Sequoia Timber Company purchased land containing an estimated 6,500,000 board feet of lumber for $3,700,000. The company invested another $300,000 to construct access roads and a company depot. The residual value of the property and equipment is estimated to be $880,000.
a. What is the average depletion cost per board foot of lumber
b. If 782,000 board feet were cut in the second year of operation, what is the amount of the depletion cost for that year