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Nathan Corporation is comparing two diferent options. Nathan Tcurrently uses Option 1. with revenues of $78.000 per year, maintenance expenses of 56,000 per year, and
Nathan Corporation is comparing two diferent options. Nathan Tcurrently uses Option 1. with revenues of $78.000 per year, maintenance expenses of 56,000 per year, and operating expenses of $31,200 per year Option 2 provides revenues of 372.000 per year, maintenance expenses of $6.000 per year, and operating expenses of $26,400 per year Option temploys a piece of equipment which was upgraded 2 years ago at a cost of $20,000. Option 2 is chosen. It will tree up resources that will bring in an additional $5,000 of revenue. Complete the following table to show the change in Income from choosing Option 2 versus Option 1 Designate Surk costs with an "s* otherwise select "NA" (Enter negative amounts using either a negative sign preceding the number ege. -45 or parentheses es. (451) Option 1 Option 2 Net Income Increase (Decrease) Sunk (S) Revenues $ Maintenance expenses Operating expenses Equipment upgrade Opportunity Cost 0 0 $ & 7 3 5 . 9 e t t d g h j CV b n m
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