I need help answering requirement 4. please show all the steps and calculations. thank you

The Dalton Company produces and sells 5,700 modular computer desks per year at a selling price of $500 each. Its current production equipment, purchased for $1,600,000 and with a five-year useful life, is only two years old. It has a terminal disposal value of SO and is depreciated on a straight-line basis. The equipment has a current disposal price of $650,000. However, the emergence of a new moulding technology has led Dalton to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: (Click icon to view the data.) Required CHESS 650,000 Current disposal price One time capital costs, written off periodically as depreciation (650,000) 2,800,000 4.000.000 5,023,000 $ 4,461,500 (1,200,000) 561,500 Total relevant costs Dalton Company should replace the equipment. When comparing relevant costs between the choices, replacing the equipment is lower than the cost to upgrade. Requirement 2. Now, suppose the one-time equipment cost to replace the production equipment somewhat negotiable. All other data are as given previously. What is the maximum one-time equipment cost that Dalton would be willing to pay to replace the old equipment rather than upgrade it? Dalton would be willing to pay up to $ 4561500 Requirement 3. Assume that the capital expenditures to replace and upgrade the production equipment are as given in the original exercise but that the production and sales quantity is not known. For what production and sales quantity would Dalton (a) upgrade the equipment or (b) replace the equipment? (Round your answer to the nearest whole number.) Dalton would want to upgrade if the production and sales quantity was less than 8462 units for the three years. Requirement 4. Assume that all data are as given in the original exercise. Dan Doria is Dalton's manager, and his bonus is based on operating income. Because he is likely to relocate after about a year, his current bonus is his primary concem. Which alternative would Doria choose? Explain. (Round your answers to the nearest whole dollar. Do not leave any cells blank.) Use the table below to compute the operating income for each of the options Upgrade Replace Revenues Cash operating costs Depreciation Loss on disposal of old equipment Total costs Operating Income Data table Upgrade Replace $ 4,000,000 $ 2,800,000 130 65 One-time equipment costs Variable manufacturing cost per desk Remaining useful life of equipment (years) Terminal disposal value of equipment 3 3 0 $ 0 All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore income taxes and the time value of money