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Figure 3-1 Sonor Systems Undertakes Its Own Machine Maintenance. the Depreciation on Depreciation

question 17

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Figure 3-1
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units.
-See Figure 3-1. Compute the total machine maintenance cost for last year.


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