Information on the replacement of the Slurp Machine at Fast Gas follows: Cost Accumulated Depreciation Book Value Market Value Salvage Value (2 yrs) Salvage Value (7 yrs) Operating Expenses per year Old Machine $6,000 $3,000 $3,000 $2,000 $1,000 $32,000 New Machine $7,000 $7,000 $1,505 $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. O 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.