At the beginning of last year (2021), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Anthony 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 companys accountant to provide him with cost data on the companys elevator. This information is presented below. Old Elevator New Elevator Purchase price $96,000 $160,000 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 $34,800 $10,000 Fixed 22,800 8,800 Annual revenues are $241,000, and selling and administrative expenses are $29,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2022, Richter Condos will be able to sell it for $25,600.Using incremental analysis, determine if the old elevator should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).)

		Retain Old Elevator		Replace Old Elevator		Net Income Increase (Decrease)
Variable operating costs		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Fixed operating costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
New elevator cost		enter a dollar amount		enter a dollar amount		enter a dollar amount
Salvage on old elevator		enter a dollar amount		enter a dollar amount		enter a dollar amount
Totals		$enter a total amount		$enter a total amount		$enter a total amount

The old elevator select an option shouldshould not be replaced.