(Solved):The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,…

 

Question

The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards upgraded at a cost of $6,800, they could be sold for $19,400. Alternatively, the keyboards could be sold ‘as is’ for $8,500. What is the net advantage or disadvantage of re-working the keyboards?

 

EXPERT ANSWER

The net advantage or disadvantage of re-working the keyboards is $4,100 (advantage).

Explanation:

The incremental cost for re-working

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