Legend Service Center just purchased an automobile hoist for $34,700. The hoist has an 8-year life and an estimated salvage value of $3,800. Installation costs and freight charges were $3,600 and $700, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires on automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $72 installed. The cost of a muffler is $35, and the labor cost to install a muffler is $12.