The Tolar Corporation 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. What is the financial advantage (disadvantage) to the company from upgrading the calculators

It is therefore advisable to upgrade the calculators becauseTolar Corporation would incur loss of $8,800 which is ($15,600-$6,800)after upgradation and in a case in which it does not upgrade,it will incur a loss of$15,600.

Therefore it will have a financial advantage of $8,800

Tundexi Tundexi · Answer 2 · 2021-11-18T12:17:32+01:00

The financial advantage of upgrading the calculators is $8,800.

After Uprgrade

Selling Price of calculators after upgrade = $30,000

Cost of calculators with upgrade = $26,800 + $10,000

Cost of calculators with upgrade = $36,800

So, the loss on sales after upgrade is $6,800 loss ($36,800- $30,000).

Without Upgrade

Selling price of calculators without upgrade = $11,200

Loss on sales without upgrade = $26,800 - $11,200

Loss on sales without upgrade = $15,600

We will advice Tolar Corporation to upgrade the calculators because it would only incur the loss of only $8,800 ($15,600-$6,800) after the upgrade.

So, therefore, the financial advantage of upgrading the calculators is $8,800.

See similar solution here

brainly.com/question/16964203