The Tolar Company Has 400 Obsolete Desk Calculators That Are

question 65

Multiple Choice

The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.
-What is the net advantage or disadvantage to the company from upgrading the calculators?

• A) $8,000 disadvantage.
• B) $8,800 advantage.
• C) $18,000 disadvantage.
• D) $20,000 advantage.

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Definitions:

Employment Insurance Fund

A government-operated fund that provides financial assistance to eligible unemployed individuals, helping them to support themselves while they seek new employment.

Unemployment Insurance Claims

Unemployment insurance claims are applications filed by individuals seeking financial assistance after losing their jobs, as part of a governmental program designed to provide temporary income support.

Employee Benefits

Non-wage compensation provided to employees in addition to their regular salaries or wages.

Increasing Cost

A situation where the price of goods or services rises over time, affecting consumer behavior and economic strategies.