Multiple Choice
Reference: 09-02
Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.
-What is the net advantage or disadvantage to the company from upgrading the calculators?
A) $20,000 advantage.
B) $8,800 advantage.
C) $8,000 disadvantage.
D) $18,000 disadvantage.
Correct Answer:
Verified
Correct Answer:
Verified
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