Problem
The Tingey Company has 400 obsolete microcomputers that are carried in inventory at a total cost of $576,000. If these microcomputers are upgraded at a total cost of $130,000, they can be sold for a total of $190,000. As an alternative, the microcomputers can be sold in their present condition for $40,000.
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?