The Tolar Company Has 400 Obsolete Desk Calculators That Are

question 120

Multiple Choice

The Tolar Company has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.
-Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?

• A) $8
• B) $30
• C) $53
• D) $67

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Definitions:

Reseller

A company or individual that purchases goods or services with the intention of selling them rather than consuming or using them.

FAB Statement

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Customer Benefit Plan

A strategy designed to outline the advantages or improvements a customer will receive from a product or service.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the coming period.