CALCULATOR PRINTER VERSION NEXT Current Designs faces a number of important decisions that require incremental analysis. Current Designs is always working to identify ways to increase efficiency while becoming more environmentally conscious. During a recent brainstorming session, one employee suggested to Diane Buswell, controlier, that the company should consider replacing the current rotomold oven as a way to realize savings from reduced energy consumption. The oven operates on natural gas, using 13,600 therms of natural gas for an entire year. A new, energy eldentrotomold over would operate on 12,000 therms of natural gas for an entire year. After seeking out price quotes from a few suppliers, Diane determined that it would cost approximately $200,000 to purchase a new, energy efficient rotomoldoven. She determines that the expected useful life of the new oven would be 10 years, and it would have no salvage value at the end of its useful life. Current Designs would be able to sell the current even for $8,000 Prepare an incremental analysis to determine if Current Designs should purchase the new rotomold oven, assuming that the average price for natural gas over the next 10 years will be $0.70 per therm. (Enter decrease in net income then enter with a negative sin preceding the number of parenth.15,000 or (15,000).) Retain Oven Replace Oven Net Income Increase (Decrease) Variable manufacturing costs New oven cost Proceeds from scrapping old oven Total Current Designs purchase the new rotomoldoven Diane is concerned that natural gas prices might increase at a faster rate over the next 10 years. If the company projects that the average natural gas price of the next 10 years could be as high as $0.80 per therm, discuss how that might change your conclusion in (a), (Enter decrease in net income then with a negative in preceding the number or parenthesis, e.g. 15,000 or (15,000).) Net Income Retain Replace Increase Oven Oven (Decrease) Variable manufacturing costs $ New oven cost Proceeds from scrapping old oven MacBook Air CALVATOR PRINTER VERSION BACK NEXT Retain Oven Replace Oven Increase (Decrease) Variable manufacturing costs $ $ $ New oven cost Proceeds from scrapping old oven Total Current Designs purchase the new rotomoldoven Diane is concerned that natural gas prices might increase at a faster rate over the next 10 years. If the company projects that the average natural gas price of the next 10 years could be as high as $0.80 per therm, discuss how that might change your condusion in (a). (Enter decrease in net income then enter with negative sin preceding the number or parenthesis, .g. -15,000 or (15,000).) Retain Oven Replace Oven Net Income Increase (Decrease) Variable manufacturing costs New oven cost Proceeds from scrapping old oven Total Current Designs purchase the new rotomoldoven. Click if you would like to show Work for this questions Open Show Work Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER MacBook Air