Annual revenues are $241,000, and selling and administrative expenses are $29,000, regardless of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Richter Condos will be able to sell it for $24,500. (a) Your answer is correct. Determine any gain or loss if the old elevator is replaced. PLoss on sale v 59500 Prepare a 4-year summarized income statement for each of the following assumptions: (1) The old elevator is retained. Retain Old Elevator 954000 Revenues Less costs: Variable costs 140400 Fixed costs Selling & administrative T T T 95200 116000 84000 Depreciation 435600 Net income 528400 (2) The old elevator is replaced. Replace Old Elevator 964000 Revenues Less costs: Variable costs 44000 Fixed costs 32000 Selling & administrative 116000 Depreciation L 160000 352000 Operating income 612000 Less: Loss on old elevator 59500 Net income (c) Your answer is partially correct. Try again. Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Retain Old Elevator Replace old Elevator Net Income Increase (Decrease) Variable operating costs 140400 44000 96400 Fixed operating costs New elevator cost 160,000 63200 -160,000 59500 Salvage on old elevator -59500 Totals 235600 11 176500 59100