cardinal tool corp. has 400 obsolete drills that are carried in inventory at a total cost of 26,800. if these drills are upgraded at a total cost of 10,000 they can be sold for 32,000. as an alternative the drills can be sold in their present condition for 12,200.

a. what is cardinals sunk cost in this scenario

b calculate the net advantage/disadvantage to the company from upgrading the drills. explain your calculations

c. assume cardinal chooses to upgrade the drills. what unit selling price would the company be as well off as it it would be if it just sold at their current condition., explain your calculations.