Question

PowerOn Technology has 12 computers that have become obsolete and that are carried in its inventory...

PowerOn Technology has 12 computers that have become obsolete and that are carried in its inventory at a cost of $13,200. If an upgrade is made to the computers at a cost of $7,500, they could be sold for $15,300. The other option is the computers could be sold “as is” for $9,000. What is the net advantage or disadvantage of upgrading the computers?

Group of answer choices

$1,200 disadvantage

$6,300 advantage

$3,000 advantage

$5,400 disadvantage

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Answer #1
Correct Option $1,200 disadvantage
Selling price if upgraded          15,300
Less: cost of upgrade          (7,500)
Income is sold after upgradation            7,800
Less: sales price is sold as it is          (9,000)
Financial Disadvantage          (1,200)
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