The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

question 17

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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