Current Attempt in Progress Current Designs faces a number of important decisions that require incremental analysis. Current Designs is always working to identify ways to increase efficiency while becoming more environmentally conscious. During a recent brainstorming session, one employee suggested to Diane Buswell, controller, that the company should consider replacing the current rotomoldoven as a way to realize savings from reduced energy consumption. The oven operates on natural gas, using 16,700 therms of natural gas for an entire year. A new, energy efficient rotomold oven would operate on 14,700 therms of natural gas for an entire year. After seeking out price quotes from a few suppliers, Diane determined that it would cost approximately $245,000 to purchase a new, energy efficient rotomoldoven. She determines that the expected useful life of the new oven would be 10 years, and it would have no salvage value at the end of its useful life. Current Designs would be able to sell the current oven today for $9,800. Otherwise, its remaining useful life is estimated at 10 years with a zero salvage value. (a) Your answer is correct. Prepare an incremental analysis to determine if Current Designs should purchase the new rotomoldoven, assuming that the a) Your answer is correct. Prepare an incremental analysis to determine if Current Designs should purchase the new rotomoldoven, assuming that the average price for natural gas over the next 10 years will be $0.60 per therm. (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, es -15,000 or (15,0001) Retain Oven Replace Oven Net Income Increase (Decrease Variable manufacturing costs $ 100200 S 38200 12000 New oven cost 0 245000 i 245000 Proceeds from scrapping old oven -9000 9800 Total $ 100200 323400 223300 Current Designs should not purchase the new rotomold diven Question Part Score 6/6 (b) Diane is concerned that natural gas prices might increase at a faster rate over the next 10 years. If the company projects that the average natural gas price of the next 10 years could be as high as $0.90 pertherm, discuss how that might change your conclusion in tal (Enter decrease in net income then enter with a negative stan preceding the number or parenthesis, 315.000 or (15.000 Retain Oven Replace Net Income Increase (Decrease Oven Variable manufacturing costs $ New even cost Proceeds from scrapping old over Total Current Desiers purchase the new rotomoldovan