Answer:
b. have reason to know of the cause of the failure.
Solution:
a. The first year depreciation = $3,160
The second year depreciation = $5,100
b. By considering 75% used for business purchase
For 2018 , for 7 months remaining
Depreciation = $3,160 x 75% ( 
= $1382.50
For 2019 ,
Depreciation = $5,100 x 75% = $3,825
Answer:
Break Even in Units 142,193
Explanation:

28.5 - 22.37 = 6.13
This is the margin per unit to afford the fixed cost and generate a profit
Monetary Fixed cost:
87,000
Depreciation is a non-monetary concept, we are asked for a cash basis so we don't include it.
I'm assuming the 87,000 fixed cost do not include the depreciation so it will be ignored.
If the fixed cost include the depreciation then we should subtract depreciation and calculate with the answer.

87,000/6.13 = 142,192.50 = 142,193
Answer:
The elasticity of Diet Pepsi rose, and its ability to raise revenues through price increases fell.
Explanation:
When a good has very close substitutes, like Diet Pepsi does with respect to Diet Coke, said good has a elastic price elasticity of demand, because the quantity demanded of it falls proportionally more than an increase in price since consumers turn to the substitute good when said good becomes more expensive.
If the price of Diet Pepsi rises, people can simply buy Diet Coke, potentially reducing revenue for Pepsi even more, despite the price increases.