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The Tolar Corporation Has 400 Obsolete Desk Calculators That Are

Question 195

Multiple Choice

The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $110,000, they can be sold for a total of $170,000. As an alternative, the calculators can be sold in their present condition for $40,000.What is the financial advantage (disadvantage) to the company from upgrading the calculators?


A) $130,000
B) ($570,000)
C) $20,000
D) ($60,000)

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