The Asus Company has 56 obsolete desktop computers that are carried in inventory at a total cost of $39,200. If these desktop computers are upgraded at a total cost of $11,000, they can be sold for a total selling price of $33,000. As an alternative, the desktop computers can be sold in their present condition for $8,400. Do not enter dollar signs or commas in the input boxes. Only use the negative sign for a disadvantage to upgrade. a) How much is the total sunk cost in this situation? Sunk Cost: $ b) What is the net advantage or disadvantage to the Asus Company from upgrading and selling the desktop computers? Upgrade computers Selling as-is Advantage/disadvantage to upgrade $

The Asus Company has 56 obsolete desktop computers that are carried in inventory at a total cost of $39,200. If these desktop computers are upgraded at a total cost of $11,000, they can be sold for a total selling price of $33,000. As an alternative, the desktop computers can be sold in their present condition for $8,400. Do not enter dollar signs or commas in the input boxes. Only use the negative sign for a disadvantage to upgrade. a) How much is the total sunk cost in this situation? Sunk Cost: $ b) What is the net advantage or disadvantage to the Asus Company from upgrading and selling the desktop computers? Upgrade computers Selling as-is Advantage/disadvantage to upgrade $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Asus Company has 56 obsolete desktop computers that are carried in inventory at a total cost of $39,200. If these desktop
computers are upgraded at a total cost of $11,000, they can be sold for a total selling price of $33,000. As an alternative, the desktop
computers can be sold in their present condition for $8,400.
Do not enter dollar signs or commas in the input boxes.
Only use the negative sign for a disadvantage to upgrade.
a) How much is the total sunk cost in this situation?
Sunk Cost: $
b) What is the net advantage or disadvantage to the Asus Company from upgrading and selling the desktop computers?
Upgrade computers
Selling as-is
Advantage/disadvantage to upgrade $

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