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Use the following information to answer questions 7 - 9 Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total

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Use the following information to answer questions 7 - 9 Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000. 7) The sunk cost in this situation is: A) $1,100,000 B) $40,000 C) $750,000 D) $690,000 8) What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition? A) $20,000 disadvantage B) $60,000 advantage C) $60,000 disadvantage D) $20,000 advantage 9) Suppose the selling price of the upgraded computers has not been set. At what selling price per unit would the company be as well off upgrading the computers as if it just sold the computers in their present condition? A) $562.50 B) $86.50 C) $912.50 D) $887.50

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