The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.

What is the financial advantage (disadvantage) to the company from upgrading the calculators?

Multiple Choice

$20,000

$8,800

($8,000)

($18,000)