BigByte Company has 20 obsolete computers that are carried in inventory at a cos
ID: 2376324 • Letter: B
Question
BigByte Company has 20 obsolete computers that are carried in inventory at a cost of $15,000. If these computers are upgraded at a cost of $8,000, they could be sold for $17,700. Alternatively, the computers could be sold as is for $8,500. Which is the net advantage or disadvantage of reworking the computers? $1,200 advantage$1,200 disadvantage
$9,200 disadvantage
$9,700 advantage BigByte Company has 20 obsolete computers that are carried in inventory at a cost of $15,000. If these computers are upgraded at a cost of $8,000, they could be sold for $17,700. Alternatively, the computers could be sold as is for $8,500. Which is the net advantage or disadvantage of reworking the computers?
Explanation / Answer
advantage is 17700 - 8500 - 8000 = 1200
Hence
A) $1,200 advantage
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