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Adelphi Corporation has 2,000 old computers in inventory. The manufacturing cost of each computer was $360. In order to get rid of this inventory, the
Adelphi Corporation has 2,000 old computers in inventory. The manufacturing cost of each computer was $360. In order to get rid of this inventory, the company has two options: Sell all computers on "as is" basis for a total of $600,000 to a distributor who would like to donate those to schools in a poor country; or spend $680,000 on completely refurbishing all 2,000 computers and then sell those in the U.S. market for $600 each. Which option is better? Explain with computations, if necessary.
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