Question
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
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?
a. $20,000
b. $8,800
c. ($8,000)
d. ($18,000)
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Managerial Accounting
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