Company from upgrading the computers


The tesla 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 sunk cost? What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Company from upgrading the computers
Reference No:- TGS041701

Expected delivery within 24 Hours