The Tingey Company Has 500 Obsolete Microcomputers That Are Carried

question 8

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:

Customer Intimacy

A business strategy that focuses on personalization and customer care, creating close relationships with customers to understand and meet their needs in a unique way.

Operational Excellence

refers to the strategic practice of improving efficiency, productivity, and effectiveness in an organization's operations.

Lower Costs

Reducing expenses associated with business operations, production, or services, often to improve profitability.