Problem 12-4 (Part Level Submission) Last year (2016), Martinez Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning from the exhibition, he asked his purchasing agent to collect price and operating cost data on the new elevator. In addition, he asked the company's accountant to provide him with cost deta on the company's elevator. This information is presented below. New Elevator Old Elevator Purchase price Estimated salvage value Estimated useful life Depreciation method Annual operating costs $98,500 $159,000 years Straight-line Straight-line years other than depreciation: Variable Fixed $34,400 22,400 $11,000 8,600 Annual revenues are $240,000, and selling and administrative expenses are $28,000, regardiess of which elevator is used. If the old elevator is replaced now, at the beginning of 2017, Martinez Condos will be able to sell t for $24,700. Using incremental analysis, determine if the old elevator should be replaced. (Enter negative amounts using either a neg Net Income Increase Retain Replace Old Elevator Old Elevator (Decrease) Variable operating costs Fixed operating costs New elevator cost Salvage on old elevator S Totals Click if you would like to Show Work for this question: Open Show Work