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You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in

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You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 17% over the current amount of 99,000 units. If your sales price is $18 per unit, what are the incremental revenues next year from the upgrade? The incremental revenues are $1] (Round to the nearest dollar.) Daily Enterprises is purchasing a $10.3 million machine. It will cost $45,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. The machine will generate incremental revenues of $3.9 million per year along with incremental costs of $1.1 million per year. If Daily's marginal tax rate is 21%, what are the incremental earnings (net income) associated with the new machine? The annual incremental earnings are $ (Round to the nearest dollar.)

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