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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Definitions:

Reflex Arc

The neural pathway that mediates a reflex action, involving sensory receptors, neural pathways, and effectors.

Neural Pathway

Networks of neurons transmitting signals from one part of the brain or spinal cord to another, coordinating body functions.

Skeletal Muscles

Voluntary, striated muscles that are attached to bones by tendons and facilitate movement.

Reflexes

Involuntary and nearly instantaneous movements in response to a stimulus, serving as a protective mechanism for the body.