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The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

Question 8

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.
-The sunk cost in this situation is


A) £720,000.
B) £160,000.
C) £ 50,000.
D) £100,000.

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