At the beginning of last year (2021), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cost data on the company's elevator. This information is presented here. Old Elevator New Elevator Purchase price $103,500 $161,000 Estimated salvage value 0 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs other than depreciation: Variable $34,600 $10,000 Fixed 23,600 8,800 Your answer is correct. Determine any gain or loss if the old elevator is replaced. Loss on sale $ 58400 i Retain Old Elevator Revenues $ 956000 Less costs: Variable costs $ 138400 i Fixed costs 94400 i Selling & administrative 160000 Depreciation 58400 392800 Net income $ LA 563200 Replace Old Elevator Revenues $ Less costs: Variable costs $ $ Fixed costs Selling & administrative Depreciation Operating income Less: Loss on old elevator Net income $ Retain Old Elevator Replace Old Elevator Net Income Increase (Decrease) Variable operating costs $ $ $ $ Fixed operating costs New elevator cost Salvage on old elevator Totals $ et $ $ The old elevator be replaced