The Tolar Corporation has 400 obsolete desk calculators that are carried in inve
ID: 2410819 • Letter: T
Question
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 $200,000, they can be sold for a total of $260,000. As an alternative, the calculators can be sold in their present condition for $40,000.
Assume that Tolar 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?
Multiple Choice
$210 per calculator
$600 per calculator
$308 per calculator
$100 per calculator
Explanation / Answer
cost of up gradation per unit
200000/400
500
selling price per unit
650
price if sold with out up gradation
100
100
selling price if it is sold as well off as if it just sold the calculators in their present condition
500+100
600
cost of up gradation per unit
200000/400
500
selling price per unit
650
price if sold with out up gradation
100
100
selling price if it is sold as well off as if it just sold the calculators in their present condition
500+100
600
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