Tawstir Corporation Has 800 Obsolete Personal Computers That Are Carried

question 114

Multiple Choice

Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1, 100, 000.If these computers are upgraded at a total cost of $40, 000, they can be sold for a total of $750, 000.As an alternative, the computers can be sold in their present condition for $690, 000. What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

• A)$20, 000 advantage
• B)$20, 000 disadvantage
• C)$60, 000 advantage
• D)$60, 000 disadvantage