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As with many businesses, Twister Corporation has old computers that it needs to decide what to do with. Currently Twister has 500 obsolete personal computers
As with many businesses, Twister Corporation has old computers that it needs to decide what to do with. Currently Twister has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. One possible alternative is to upgrade them at a total cost of $190,000, at which point they can be sold for a total of $250,000. A second alternative is to sell these computers in their present condition for $50,000. Suppose the selling price of the computers when upgraded has not been set. At what selling price per unit would the company be just as well off selling the computers in their current condition versus spending the money upgrading them. (HINT: think here about the upgraded price) $190 $770 $480 $390
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