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

Describe the relationship between the marginal rate of substitution and movements along an indifference curve.

Recognize the significance of the slope of a budget line in consumer choice.

Distinguish between total utility and marginal utility and their respective roles in consumer decision-making.

Explain the law of diminishing marginal utility and its connection to the demand curve.

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Definitions:

Inventory

The total value of a company's raw materials, work-in-progress, and finished goods that are considered assets on a balance sheet.

Account Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.

Supplies

Items used in the day-to-day operations of a business, often consumable in nature, such as office supplies, manufacturing materials, or maintenance necessities.