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What is the net advantage to the company from upgrading

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Reference no: EM132603362

The Careless Whisper 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.

Question A. What is the sunk cost in this situation?

Question B. What is the net advantage or disadvantage to the company from upgrading the calculators?

Question C. Assume that Careless Whisper 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?

Reference no: EM132603362

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