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Sunland T Corporation is comparing two different options. Sunland T currently uses Option 1, with revenues of $57,000 per year, maintenance expenses of $4,400 per
Sunland T Corporation is comparing two different options. Sunland T currently uses Option 1, with revenues of $57,000 per year, maintenance expenses of $4,400 per year, and operating expenses of $22,900 per year, Option 2 provides revenues of $53,000 per year, maintenance expenses of $4,400 per year, and operating expenses of $19,400 per year, Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $15,000. If Option 2 is chosen, it will free up resources that will bring in an additional $3,500 of revenue Complete the following table to show the change in income from choosing Option 2 versus Option 1 . Desigrate Sunk costs with an "S" otherwise select "NA", (Enter negative amounts using either a negotive sign preceding the number c g. -45 or parentheseses (45))
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