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Required:
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

1 Answer

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Answer:

the net advantage of upgrading is $20,000

Explanation:

The calculation of the net advantage or disadvantage is given below:

After upgrading Sales value $230,000

Less: present sales value      -$40,000

Upgrading Incremental advantage $190,000

Less: upgrading total cost  ($170,000)

Net advantage of upgrading $20,000

Therefore, the net advantage of upgrading is $20,000

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answered 10 months ago