Solved

The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

Question 17

Multiple Choice

The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of £720,000. If these microcomputers are upgraded at a total cost of £100,000, they can be sold for a total of £160,000. As an alternative, the microcomputers can be sold in their present condition for £50,000.
-What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?


A) £110,000 advantage.
B) £660,000 disadvantage.
C) £ 10,000 advantage.
D) £ 60,000 advantage.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions