The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

question 122

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.
-What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

• A)$110,000 advantage
• B)$660,000 disadvantage
• C)$10,000 advantage
• D)$60,000 advantage

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