Interglobal Health Consultants has asked for your help in comparing its present computer system with a new one its board of directors would like to see implemented. The proposed system costs and present system costs are as follows:

Graph the costs of the proposed and present systems and show the break-even point.

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Item Year 1 Equipment lease Salaries Overhead Development Year 2 Equipment lease Salaries Overhead Development Year 3 Equipment lease Salaries Overhead Development Year 4 Equipment lease Salaries Overhead Development Proposed System Costs $20,000 30,000 4,000 30,000 $20,000 33,000 4,400 12,000 $20,000 36,000 4,900 $20,000 39,000 5,500 Present System Costs $11,500 50,000 3,000 $10,500 55,000 3,300 $10,500 60,000 3,600 $10,500 66,000 4,000