USA: +1 725-224-8795 
Sign in
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. As an alternative, the calculators can be sold in their present condition for $40,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Multiple Choice
Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000……
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
$20,000
$(560,000)
$120,000
$(60,000
Expert Answer
Current sales value=$40,000.
Incremental sales revenues from upgrading the calculators=($160,000-$100,000)=$60,000.
Hence financial advantage to the company would be =($60,000-$40,000)
=$20,000(A).
