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.
-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 advantage
B)$20,000 disadvantage
C)$60,000 advantage
D)$60,000 disadvantage

Question

Quizplus · Accepted Answer

Upgrading the computers will result in a net advantage of $20,000 ($750,000 - $1,100,000 - $40,000) compared to selling them in their present condition ($690,000 - $1,100,000).

Tawstir Corporation Has 800 Obsolete Personal Computers That Are Carried