20 QUESTION 12 Aswaq Enterprises to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, Current Machine Now Machine $15,000 6,000 25,000 6 years $25,000 purchase cost 20,000 costs ife f the company decides to buy the new machine, the old machine can be sold for $5,000 and an additional sales revenue of $10,000 can be generated from using the new machine. Both machines are expected to have a zero salvage value at tho end of their useful life. Instructions: retain the current computer or replace i with the new one. a. Fill in the following incremental analysis table to help the management decide whether to Retain Okd Replace Old Computerse (Decrease) in Net Income Competer New computer cost Operating costs Opportunity cost l Opportunity cost 2 Total cost b. Based on the results of your above incremental analysis, should the management replace the current computer? Click Sqve and Submit to save and submit. Click Save All Answers to save all answers. Close Windo Save All Answers K the company decikdes to buy the new machine, the old machine can be sold for $5,000 and an additional sales revenue of $10,000 can be generated from using the new machine. Both machines are expected to have a zero salvage value at the end of their useful life. Instruetions: a. Fin the following incremental analysis table to help the management decice whether to retain the ourront computer or replace it with the new one Retaln Old Replace Old Computer Increase (Decrease) in Net Income Compater New computer cost Operating costs Opportunity cost I Opportunity oost 2 Total cost b. Based on the rosults of your above incremental anaiysis, should the management roplace the current computer? Enter Y for Yes or N for 'No: The original purchase cost of the current computer is not relevant in the incremental analysis, What is the type of this cost