Hi-Tech Inc.has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.They could be updated for an additional $2,400 and sold.If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
-At what price were the updated versions sold?

Question

Quizplus · Accepted Answer

The updated computers were sold for $16,000. The net income increase of $9,000 is the difference between the selling price and the total cost ($17,800 original cost + $2,400 update cost - $4,600 scrap value). Solving for the selling price gives $16,000.