The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

question 44

Multiple Choice

The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the microcomputers can be sold in their present condition for $50,000.
-The sunk cost in this situation is:

• A)$720,000
• B)$160,000
• C)$50,000
• D)$100,000

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Definitions:

Depression

A syndrome in mental wellness characterized by an enduring low mood or apathy towards routine activities, severely affecting one's daily existence.

Susan Nolen-Hoeksema

An influential psychologist known for her work on rumination and its effects on depression and mental health.

Emotional Distress

Significant mental suffering or anguish, often resulting from stressful situations or traumatic events.

Ruminate

To think deeply or repeatedly about something, often about problems or negative experiences.