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Question 28 (5 points) Oriole Mechanical Inc. has soo obsolete winches that are carried in inventory at a total cost of $28,800. If these winches
Question 28 (5 points) Oriole Mechanical Inc. has soo obsolete winches that are carried in inventory at a total cost of $28,800. If these winches are upgraded at a total cost of $12,000, they can be sold for $38,000. As an alternative, the winches can be sold in their present conditions for $14,400. a. What is Oriole's sunk cost in this scenario? b. Calculate the net advantage/disadvantage to the company from upgrading the winches. Explain your calculations. C. Assume Oriole chooses to upgrade the winches. At what unit selling price would the company be as well off at as it would be if it just sold the winches in their current condition? Explain your calculations
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