Using incremental analysis determine if the all elevator should be replacedIn the first two columns enter cost and expenses as positive amounts and any amounts receive as negative amounts. And a third column Internet income increases as positive Amounts in decrease as negative amounts Enter negative amounts using either a negative sign preceding the number or parenthesesThere is three columns Retain old elevator replace old elevator and net income increase ( decrease)Under each column it has a variable operating cost fixed operating cost new elevator cost salvage on old elevator and total

Question 4 of S 8.67/13 View Policies Show Attempt History Current Attempt in Progress At the beginning of last year (202 1). Richter 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 efciency. 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 wit cost data on the company's elevator. This information is presented here. Old Elevator New Elevator Purchase price $105,000 5161.000 Estimated salvage value 0 0 Estimated useful life 5 years 4 years Depreciation method Straight-line Straight-line Annual operating costs E other than depreciation: Variable $34,500 $9,000 Fixed 22,000 8.900 Annual revenues are $240,000, and selling and administrative expenses are $23,000. regardless of which elevator is used. If the old elevator is replaced now. at the beginning of 2022, Richter Condoswill be able to sell it for $24,200