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 $170,000, they can be sold for a total of $230,000. 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?
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 $170,000, they can be sold for a total of $230,000. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 $170,000, they can be sold for a total of
$230,000. 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?
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