Question: Nathan T Corporation is comparing two different options. Nathan Tcurrently uses Option 1 with revenues of $55.000 per year maintenance expenses of $4,200 per year,
Nathan T Corporation is comparing two different options. Nathan Tcurrently uses Option 1 with revenues of $55.000 per year maintenance expenses of $4,200 per year, and operating expenses of $21.800 per year Option 2 provides revenues of $50,000 per year, maintenance expenses of $4.200 per year and operating expenses of $18,500 per year. Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $14,000. If Option 2 is chosen, it will free up resources that will bring in an additional $3.500 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 sin preceding the numbers-450 parentheses es. (451) Option 1 Option 2 Net Income Increase (Decrease) Sunk (5) Revenues I Maintenance expenses > Operating expenses Equipment upgrade Opportunity cost
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