Linksys is considering the development of a wireless home networking appliance, called HomeNet, that will provide both the hardware and the software necessary to run an entire home from any internet connection. HomeNet's lab will be housed in warehouse space that the company could have otherwise rented out for $198,000 per year during years 1 through 4. The tax rate for Linksys is 20%. How does this opportunity cost affect HomeNet's incremental earnings? You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 15% over the current amount of 101,000 units. If your sales price is $19 per unit, what are the incremental revenues next year from the upgrade? Linksys is considering the development of a wireless home networking appliance, called HomeNet, that will provide both the hardware and the software necessary to run an entire home from any internet connection. HomeNet's lab will be housed in warehouse space that the company could have otherwise rented out for $198,000 per year during years 1 through 4. The tax rate for Linksys is 20%. How does this opportunity cost affect HomeNet's incremental earnings? You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 15% over the current amount of 101,000 units. If your sales price is $19 per unit, what are the incremental revenues next year from the upgrade?