Swell Computers Has 12 Obsolete Computers That Are Carried in Its

question 38

Multiple Choice

Swell Computers has 12 obsolete computers that are carried in its inventory at a cost of $13,200.If these computers are upgraded at a cost of $7,500, they could be sold for $15,300.Alternatively, the computers could be sold "as is" for $9,000.What is the net advantage or disadvantage of upgrading the computers?

• A)$6,300 advantage
• B)$1,200 disadvantage
• C)$5,400 disadvantage
• D)$3,000 advantage

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Definitions:

Economic Power

The ability of an entity, whether a country, organization, or individual, to influence or control economic activities, markets, and resources, often correlating with wealth and production capabilities.

Overproduction

A situation where more goods are produced than can be sold, often leading to economic downturns or depressions.

Bland-Allison Act

The Bland-Allison Act, passed in 1878, was U.S. legislation requiring the federal government to purchase and coin a minimum amount of silver each month to inflate currency.

Sherman Silver Purchase Act

An 1890 United States federal law that increased the amount of silver the government was required to purchase every month, driving up the money supply and inflation.