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Sandhill T Corporation is comparine two different options. Sandhill T currently uses Option 1 ,...

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Accounting

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Sandhill T Corporation is comparine two different options. Sandhill 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 piece 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 " 5 " otherwise select "NA. (Enter negative amounts using elther a negotive sign preceding the number eg. 45 ar parentheses es (45)

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