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Blossom T Corporation is comparing two different options. Blossom T currently uses Option 1, with revenues of $62,000 per year. maintenance expenses of $4,800 per

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Blossom T Corporation is comparing two different options. Blossom T currently uses Option 1, with revenues of $62,000 per year. maintenance expenses of $4,800 per year, and operating expenses of $25,000 per year. Option 2 provides revenues of $58.000 per year, maintenance expenses of $4,800 per year, and operating expenses of $21,100 per year, Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $16,000. If Option 2 is chosen, it will free up resources that will bring in an additional $4,000 of revenue. Complete the following table to show the change in income from choosing Option 2 versus Option 1. Designate Sunk costs with an "S" otherwise select "NA". (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses es. (45).) As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis. Identify each statement as true or false. 1. The first step in management's decision-making process is, "Determine and evaluate possible courses of action. 2. The final step in management's decision-making process is to actually make the decision. 3. Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results. 4. In making business decisions, management ordinarily considers only financial information because it is objectively determined. 5. Decisions involve a choice among alternative courses of action. 6. The process used to identify the financial data that change under alternative courses of action is called incremental analysis. 7. Costs that are the same under all alternative courses of action sometimes affect the decision. 8. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not. 9. Variable costs will change under alternative courses of action, but fixed costs will not

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