Ask Question
BusinessBusiness
10 February, 15:32

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 $100,000, they can be sold for a total of $160,000. As an alternative, the calculators can be sold in their present condition for $40,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators?

a. $20,000

b. $ (560,000)

c. $120,000

d. $ (60,000

+1
Answers (1)
  1. 10 February, 15:52
    0
    Financial advantage to the company will be $40000

    So option (a) will be the correct option

    Explanation:

    We have given that current sales value = $40000

    These calculators are upgraded at a total cost of $10000

    They can be sold for a total of $160000

    Incremental sales revenues from upgradng the calculators = ($160,000-$100,000) = $60,000.

    Hence financial advantage to the company would be = ($60,000-$40,000)

    So option (a) will be the correct option
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The production budget for Manner Company shows units to be produced as follows: July, 530; August, 590; and September, 450. Each unit produced requires two hours of direct labor.
Answers (1)
The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
Answers (1)
What is it called to keep skills and knowledge up to date?
Answers (1)
Explain three guidelines for evaluating ads.
Answers (1)
Norm is a real estate professional with a real estate trade or business as defined in the tax law. He has $150,000 of business income and $50,000 of losses from actively managed real estate rentals.
Answers (1)
New Questions in Business
A what type of budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year
Answers (1)
Barton Industries has operating income for the year of $3,500,000 and a 36% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 8%. What is the firm's EVA?
No Answers
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. his insurance agent told him the policy would be paid up if he reached age 100. the present cash value of the policy equals $250,000.
Answers (1)
On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
Answers (2)
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year.
Answers (1)
Home » Business » 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 $100,000, they can be sold for a total of $160,000.
Sign Up Forgot Password?