Incremental Analysis Coffee Culture Company's managers must decide which of two coffee grinders - Y or Z - to buy. The grinders have the same purchase price but different revenue and cost characteristics. The company currently owns Grinder X, which it bought three years ago for $10,000 and which has accumulated depreciation of $9,000 and a book value of $1,000. Grinder X is now obsolete as a result of advances in technology and cannot be sold or traded in. The accountant has collected the following annual revenue and operating cost estimates for the two new machines: Grinder Y Grinder Z Increase in revenue $15,000 $18,000 Increase in annual operating costs: Direct materials 4,500 4,500 Direct labor 3,000 4,000 Variable overhead 2,000 3,000 Fixed overhead (depreciation included) 4,000 4,000 1. Identify the relevant data in this problem. The input in the box below will not be graded, but may be reviewed and considered by your instructor. Hide 2. Prepare an incremental analysis to aid the managers in their decision. Coffee Culture Company Incremental Analysis Grinder Y Grinder Z Difference (Grinder Z - Grinder Y) $ $ $ Increase in annual operating costs that differ between alternatives $ $ $ Total increase in operating costs $ $ $ $ $ $ 3. Should the company purchase Grinder Y or Grinder Z?