Question: Do it! Revlew 20-1 Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $81,000 per year, maintenance
Do it! Revlew 20-1 Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $81,000 per year, maintenance expenses of $6,200 per year, and operating expenses of $32,200 per year. Option 2 provides revenues of $74,000 per year, maintenance expenses of $6.200 per year, and operating expenses of $27,300 per year. Option 1 employs a plece of equipment which was upgraded 2 years ago at a oost of $21,000. If Option 2 is chosen, it will free up resources that will bring in an additional $5,000 of revenue. Complete the following table to show the change in income trom choosing Option 2 versus Opton 1. Designate Suk costs with ans. otherwise select .NA. Net Income Increase (Decrease) Option 1 Option 2 Sunk (S) Revenues Maintenance expenses Operating exponses Equipment upgrade Opportunity cost
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