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

    $2.19

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