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How much of the warehouse depreciation should be allocated

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Reference no: EM133072336

Question - SCD plans to use 40% of its warehouse space this year but expects to reach full utilization of 80% (allowing extra space for occasional peak demand) in two to three years. This years' depreciation of the warehouse is 769,000 and the plan is to process 350,000 packages during the year. How much of the warehouse depreciation should be allocated to one package this year?

Reference no: EM133072336

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