Question: Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $72,000 per year, maintenance expenses of $5,500 per

Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $72,000 per year, maintenance expenses of $5,500 per year, and operating expenses of $28,600 per year. Option 2 provides revenues of $66,000 per year, maintenance expenses of $5,500 per year, and operating expenses of $24,200 per year. Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $19,000. If Option 2 is chosen, it will free up resources that will bring in an additional $4,500 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" otherwise select "NA". (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Option 1

Option 2

Net Income

Increase (Decrease)Sunk (S)Revenues$

enter revenues in dollars

$

enter revenues in dollars

$

enter revenues in dollars

select an option

NAS Maintenance expenses

enter maintenance expenses in dollars

enter maintenance expenses in dollars

enter maintenance expenses in dollars

select an option

NAS Operating expenses

enter operating expenses in dollars

enter operating expenses in dollars

enter operating expenses in dollars

select an option

SNA Equipment upgrade

enter the cost of equipment upgrade in dollars

enter the cost of equipment upgrade in dollars

enter the cost of equipment upgrade in dollars

select an option

SNA Opportunity cost

enter the opportunity cost in dollars

enter the opportunity cost in dollars

enter the opportunity cost in dollars

select an option

NAS $

enter a total amount

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