Question: Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $75,000 per year. maintenance expenses of $5,800 per
Nathan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $75,000 per year. maintenance expenses of $5,800 per year, and operating expenses of $30,200 per year. Option 2 provides revenues of $70,000 per year, maintenance expenses of $5,800 per year, and operating expenses of $25,500 per year. Option 1 employs a plece of equipment which was upgraded 2 years ago at a cost of $20,000. 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 es. - 45 or parentheses es (45).)
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