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A chocolate bar manufacturing company purchased a chocolate bar machine for $360,500, which has a salvage value of 15% of its cost and a useful
A chocolate bar manufacturing company purchased a chocolate bar machine for $360,500, which has a salvage value of 15% of its cost and a useful life of 10 years. According to the machine manufacturer, it is estimated that the machine will be able to produce a total of 95,000,000 tons of chocolate before it is replaced by another one. Determine the total depreciation and depreciation per unit produced under the following estimated production schedule:
Year | Units to be produced (in kilograms) |
1 | 140,476,480 |
2 | 130,977,609 |
3 | 100,991,414 |
4 | 100,567,034 |
5 | 100,656,526 |
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