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Unformatted text preview: Cost of equipment less residual value 674,000 Differential cost of operating warehouse 3,404,000 Differential income from operating warehouse $131,000 2. Should the proposal to operate the warehouse be accepted? Yes 3. Total estimated revenue from operating warehouse $4,270,000 Total estimated expenses to operate warehouse: Costs to operate warehouse, excluding depreciation $2,730,000 Cost of warehouse equipment less residual value 674,000 3,404,000 Total estimated income from operating warehouse $866,000 Instructions...
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- Spring '12