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The tesla company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. If these microcomputers are upgraded at a total cost of 100,000, they can be sold for a total of $160,000. As an alternative, the microcomputers can be sold in their present condition for $50,000. What is the sunk cost? What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M941701

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