DO IT! 7.1 Determine incremental costs. (LO 1), AN Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $65,000 per year, maintenance expenses of $5,000 per year, and operating expenses of $26,000 per year. Option 2 provides revenues of $60,000 per year, maintenance expenses of $5,000 per year, and operating expenses of $22,000 per year. Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $17,000. If Option 2 is chosen, it will free up resources that will bring in an additional $4,000 of revenue. Complete the following table to show the change in income from choosing Option 2 versus Option 1. Designate Sunk costs with an "S. Option 1 Option 2 Net Income Increase (Decrease) Sunk (S) Revenues Maintenance expenses Operating expenses Equipment upgrade Opportunity cost