Last year (2011) Solomon Condos installed a mechanized elevator for its tenants. The owner of the company, Sam Solomon, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cost data on the company's elevator. This information is presented below. Annual revenues are $240,620, and selling and administrative expenses are $28,330, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2012, Solomon Condos will be able to sell it for $24,700. Determine any gain or loss if the old elevator is replaced. (Enter amount as positive amount and indicate profit or loss.) Incorrect. Prepare a 5-year summarized income statement for each of the following assumptions: (Enter all amounts as positive amounts and subtract where necessary.) The old elevator is retained Sales Less costs: Variable costs Fixed costs Selling & administrative Depreciation Net income The old elevator is replaced. Sales Less costs: Variable costs Fixed costs Selling & administrative Depreciation Operating income Loss on old elevator Net income Using incremental analysis, determine if the old elevator should be replaced. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the total, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). To enter salvage value amount in columns "Retain Old Elevator" and "Replace Old Elevator" use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Variable operating costs Fixed operating costs New elevator cost Salvage on old elevator Totals Last year (2011) Solomon Condos installed a mechanized elevator for its tenants. The owner of the company, Sam Solomon, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cost data on the company's elevator. This information is presented below. Annual revenues are $240,620, and selling and administrative expenses are $28,330, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2012, Solomon Condos will be able to sell it for $24,700. Determine any gain or loss if the old elevator is replaced. (Enter amount as positive amount and indicate profit or loss.) Incorrect. Prepare a 5-year summarized income statement for each of the following assumptions: (Enter all amounts as positive amounts and subtract where necessary.) The old elevator is retained Sales Less costs: Variable costs Fixed costs Selling & administrative Depreciation Net income The old elevator is replaced. Sales Less costs: Variable costs Fixed costs Selling & administrative Depreciation Operating income Loss on old elevator Net income Using incremental analysis, determine if the old elevator should be replaced. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the total, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). To enter salvage value amount in columns "Retain Old Elevator" and "Replace Old Elevator" use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Variable operating costs Fixed operating costs New elevator cost Salvage on old elevator Totals