Information on the replacement of the Slurp Machine at Fast Gas follows: Old Machine New Machine Cost $6,000 $7,000 Accumulated Depreciation $3,000 Book Value $3,000 Market Value $2,000 $7,000 Salvage Value (2 yrs) $1,000 Salvage Value (7 yrs) $1,505 Operating Expenses per year $32,000 $16,000 Due to new "Froth Technology", the new Slurp Machine reduces annual operating costs in half. Operating costs include electricity, water, syrup and cups. a. Fast Gas should buy the new machine immediately. b. Fast Gas should pass on the new machine. c. Fast Gas should examine unit level costs, batch level costs, product level costs and facility level costs. d. Fast Gas should not buy the New Machine as it will take a loss of $1.000 on the Old Machine