The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,500, they could be sold for $19,900. Alternatively, the keyboards could be sold “as is” for $8,400. What is the net advantage or disadvantage of re-working the keyboards?
The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,500, they could be sold for $19,900. Alternatively, the keyboards could be sold “as is” for $8,400. What is the net advantage or disadvantage of re-working the keyboards?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,500, they could be sold for $19,900. Alternatively, the keyboards could be sold “as is” for $8,400. What is the net advantage or disadvantage of re-working the keyboards?
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