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Bauer Manufacturing Company, Inc. -upgrading the calculators

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20. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 20 THROUGH 21.
Bauer Manufacturing Company, Inc. has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a total of $30,000. As an alternative, the calculators can be sold in their present condition for $11,200.
The sunk cost in this situation is:

a $10,000
b $26,800
c $11,200
d $30,000

21. What is the net advantage or disadvantage to the company from upgrading the calculators?

a $8,000 advantage
b $18,000 disadvantage
c $20,000 advantage
d $8,000 disadvantage

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The expert examines Bauer Manufacturing Company, Inc for up grading the calculators. .

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Bauer Manufacturing Company, Inc. has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calculators are upgraded at a total cost of $10,000, they can be sold for a ...

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