The Tolar Corporation has 300 obsolete desk calculators that are carried in inventory at a total cost of $432,000. If these calculators are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the calculators can be sold in their present condition for $30,000. 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? O $40 per calculator $154 per calculator

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Tolar Corporation has 300 obsolete desk calculators that are carried in inventory at a total cost of $432,000. If these calculators are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the calculators can be sold in their present condition for $30,000.

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?

- ☐ $40 per calculator
- ☐ $154 per calculator
- ☐ $500 per calculator
- ☐ $90 per calculator
Transcribed Image Text:The Tolar Corporation has 300 obsolete desk calculators that are carried in inventory at a total cost of $432,000. If these calculators are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the calculators can be sold in their present condition for $30,000. 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? - ☐ $40 per calculator - ☐ $154 per calculator - ☐ $500 per calculator - ☐ $90 per calculator
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