According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 70 new workstations at a cost of $75,000 each and also spends $10 million for an addition to its assembly plant to accommodate the new workstations, then its annual depreciation costs will rise by:

a. 4% of $15,250,000 or $610,000.

b. $1,550,000.

c. $193,750.

d. $800,000.

e. $775,000

Its annual depreciation costs will rise by 4% of $15,250,000 or $610,000. The right answer is a

Explanation:

In order to calculate the amount its annual depreciation costs will rise by, we would have to calculate first the total cost with the following formula:

Total cost=(Number of workstation added×cost of work station)+money spend

Total cost=(70×$75,000)+10,000,000

Total cost=$15,250,000

Therefore, Annual depreciation=4%×$15,250,000

                                                    =$610,000

Its annual depreciation costs will rise by 4% of $15,250,000 or $610,000

Explained below.

Explanation:

The economics in the late since the 1800s was overshadowed by the Big business as well as organizations that operated in the petrol as well as oil business, the railroads,the steel industry, textiles as well as food product that operated vast complexes of factories, warehouses, rooms, and distribution equipments as well as employed the preponderance of the labor force. The theory of Social Darwinism was espoused by various leaders of American Big Business and Corporations. The concept of 'Laissez-faire' economics relied on supply and demand, rather than government intervention, to regulate prices and wages.