The BigByte Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the calculators could be sold as is for $9,000. What is the net advantage or disadvantage of re-working the computers?

Answer

a. $6,300 advantage

b. $1,200 disadvantage

c. $5,400 disadvantage

d. $3,000 advantage