Bakery a sells bread for $2 per loaf that costs $0.50 per loaf to make. bakery a gives a 70% discount for its bread at the end of the day. what is the salvage value of its bread?

Answer: $0.60

Price per loaf: $2

Discount given for its bread at the end of the day = 70%

Solution:

Salvage value is the estimated resale value of a product at the end of its useful life. Since the useful life of the loaf is 1 day and it was sold at the end of the day at 70% off, the salvage value is

$2 * (1 - 70%)

$0.60.