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Indigo Corporation is comparing two different options. Indigo currently uses Option 1 with revenues of $75.000 per year, maintenance expenses of $5,800 per year, and
Indigo Corporation is comparing two different options. Indigo currently uses Option 1 with revenues of $75.000 per year, maintenance expenses of $5,800 per year, and operating expenses of $30,200 per year. Option 2 provides revenues of $70,000 per year, maintenance expenses of $5.800 per year, and operating expenses of $25,500 per year, Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $20,000. 1 Option 2 is chosen, it will free up resources that will bring in an additional 54,500 of revenue. Complete the following table to show the change in income from choosing Option 2 versus Option 1 Desipate Sunk costs with an 's otherwise select "NA" famount decreases net income then enter the amount using either a negative son precedina the number es 45 or parentheseses (451) Net Income Option 1 Option 2 Increase (Decrease Sunk (5) Revenues M Maintenance expenses Operating expenses Equipment upgrade Opportunity COST $
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