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The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

question 36

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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.
-Suppose the selling price of the upgraded computers has not been set. At what selling price per unit would the company be as well off upgrading the computers as if it just sold the computers in their present condition?


Definitions:

Word Salad

A speech pattern that is incoherent and disjointed, associated with severe mental illnesses like schizophrenia, where words are scrambled, rendering the speech difficult to understand.

Blunted Affect

A reduction in the expression of emotions, often seen as a symptom of certain psychiatric conditions, where the emotional range is significantly diminished.

Dementia Praecox

An outdated term once used to describe what is now known as schizophrenia, characterized by early onset of disconnection from reality.

Psychotic Mania

A severe form of mania that includes symptoms of psychosis such as hallucinations or delusions, often observed in bipolar disorder.

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