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Question 1 Cullumber T Corporation is comparing two different options. Cullumber T currently uses Option 1, with revenues of $81,000 per year, maintenance expenses of
Question 1 Cullumber T Corporation is comparing two different options. Cullumber T currently uses Option 1, with revenues of $81,000 per year, maintenance expenses of $6,200 per year, and operating expenses of $32,200 per year. Option 2 provides revenues of $74,000 per year, maintenance expenses of $6 200 per year and operating expenses of 77 . on employ a pece of equipment which was upgraded 2 years ago at a cost of $21,000. If Option 2 is chosen, it will free 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 Sunk costs with an "S" otherwise select "NA". (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Option 2 Sunk (S) Option 1 Revenues Maintenance expenses Operating expenses Equipment upgrade Opportunity cost
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