37.

Tawstir Corporation has 680 obsolete personal computers that are carried in inventory at a total cost of $1,087,320. If these computers are upgraded at a total cost of $40,120, they can be sold for a total of $779,280. As an alternative, the computers can be sold in their present condition for $710,940.

The sunk cost in this situation is:

$710,940

$779,280

$40,120

$1,087,320