Net advantage or disadvantage of re-working the computers


The Tobias Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $19,500. Alternatively, the computers could be sold "as is" for $9,000. What is the net advantage or disadvantage of re-working the computers?

A. $12,000 advantage

B. $1,200 disadvantage

C. $10,200 disadvantage

D. $3,000 advantage

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Operation Management: Net advantage or disadvantage of re-working the computers
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