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Nathan T Corporation is comparing two different options. Nathan Tcurrently uses Option 1, with revenues of $74,000 per year, maintenance expenses of $5,700 per year,
Nathan T Corporation is comparing two different options. Nathan Tcurrently uses Option 1, with revenues of $74,000 per year, maintenance expenses of $5,700 per year, and operating expenses of $29,600 per year. Option 2 provides revenues of $68,000 per year, maintenance expenses of $5.700 per year, and operating expenses of $25,100 per year. Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $19.000. If Option 2 is chosen, it will free up resources that will bring in an additional $4.500 of revenue. Complete the following table to show the change in income from choosing Option 2 versus Option 1. Designate Sunk costs with an "s" otherwise select "NA". (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg.(45)) Net Income Increase (Decrease) Option 1 Option 2 Sunk (S) Revenues $ 74000 $ 68000 $ 6000 Maintenance expenses 5700 5700 29600 25100 4500
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