Solved

Tawstir Corporation Has 800 Obsolete Personal Computers That Are Carried

Question 101

Multiple Choice

Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000.
-What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?


A) $20,000 advantage
B) $20,000 disadvantage
C) $60,000 advantage
D) $60,000 disadvantage

Correct Answer:

verifed

Verified

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

Related Questions