The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total...
The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of $110,000, they can be sold for a total of $170,000. As an alternative, the calculators can be sold in their present condition for $50,000.
What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Homework Answers
| The company has a financial advantage of $ 10,000 from upgrading the calculators | ||
| The same is illustrated below | ||
| Particulars | Amount ($) | Explanation |
| Carrying amount of calculators | 7,20,000 | It will not be considered in decision making as it is a sunk cost |
| If calculators are upgraded | ||
| Total cost of upgradation (A) | 1,10,000 | given in question |
| Total selling price (B) | 1,70,000 | given in question |
| Profit C= ( B-A ) | 60,000 | difference in the above |
| If calculators are not upgraded | ||
| Selling Price D | 50,000 | given in question |
| Total additional profit if calculators are upgraded (C-D) | 10,000 | |
| Please do upvote if you found the answer useful. | ||
| Feel free to reach in the comment section in case of any clarification or queries. |
Add Answer to:
The Tolar Corporation has 500 obsolete desk calculators that are
carried in inventory at a total...
The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total...
The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of $110,000, they can be sold for a total of $170,000. As an alternative, the calculators can be sold in their present condition for $50,000. What is the financial advantage (disadvantage) to the company from upgrading the calculators? A) $120,000 B) ($60,000) C) $10,000 D) ($670,000)
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total...
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. What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Chapter 11 Qul 4 The Tolar Corporation has 500 obsolete desk calculators that are carried in...
Chapter 11 Qul 4 The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. if these calculators are upgraded at a total cost of $140,000, they can be sold for a total of $200,000. As an alternative, the calculators can be sold in their present condition for $50.000, What is the financial advantage (disadvantage) to the company from upgrading the calculators? po 00:55:50 Multiple Choice (5700,000) $70,000 $150.000 160,000 M <...
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total...
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 $110,000, they can be sold for a total of $170,000. 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...
Tawstir Corporation has 620 obsolete personal computers that are carried in inventory at a total cost...
Tawstir Corporation has 620 obsolete personal computers that are carried in inventory at a total cost of $959,760. If these computers are upgraded at a total cost of $32,860, they can be sold for a total of $725,400. As an alternative, the computers can be sold in their present condition for $663,090. The sunk cost in this situation is: $725,400 $663,090 $32,860 $959,760
Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost...
Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000. The sunk cost in this situation is: O $40,000 O $750,000 $1,100,000 O $690,000
Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores f
Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores for $2.60 per unit. What alternative should be chosen, and why?Scrap; profit is $3760 greater.Repackage; revenue is $5400 greater than cost.Scrap; incremental loss is $7120.Repackage; receive profit of $10520.
Truck Components has an inventory of 500 obsolete remote entry keys that are carried in inventory...
Truck Components has an inventory of 500 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $78,500 Production supervisor Andy Johns must decide to do one of the following: • Process the inventory further at a cost of $10,000, with the expectation of sing it for $35.000 Scrap the inventory for a sales price of $3,000 What should Johns do? Present figures to support your decision Prepare the Sellor Process Further analysis (Enter a "o"...
1. Part U16 is used by Mcvean Corporation to make one of its products. A total...
1. Part U16 is used by Mcvean Corporation to make one of its products. A total of 18,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 3.90 Direct labor $ 8.50 Variable manufacturing overhead $ 9.00 Supervisor's salary $ 4.40 Depreciation of special equipment $ 2.80 Allocated general overhead $ 8.00 An outside supplier has offered...
A customer has requested that Lewelling Corporation fill a special order for 2,500 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,500 units of product S47 for $30 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $21.40: Direct materials $ 6.10 Direct labor 4.00 Variable manufacturing overhead 3.20 Fixed manufacturing overhead 8.10 Unit product cost $ 21.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed...
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. What is the financial advantage (disadvantage) to the company from upgrading the calculators?
Chapter 11 Qul 4 The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. if these calculators are upgraded at a total cost of $140,000, they can be sold for a total of $200,000. As an alternative, the calculators can be sold in their present condition for $50.000, What is the financial advantage (disadvantage) to the company from upgrading the calculators? po 00:55:50 Multiple Choice (5700,000) $70,000 $150.000 160,000 M <...
Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000. The sunk cost in this situation is: O $40,000 O $750,000 $1,100,000 O $690,000
Truck Components has an inventory of 500 obsolete remote entry keys that are carried in inventory at a manufacturing cost of $78,500 Production supervisor Andy Johns must decide to do one of the following: • Process the inventory further at a cost of $10,000, with the expectation of sing it for $35.000 Scrap the inventory for a sales price of $3,000 What should Johns do? Present figures to support your decision Prepare the Sellor Process Further analysis (Enter a "o"...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago