Net advantage or disadvantage of re-working the keyboards


Problem:

The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,500, they could be sold for $19,000. Alternatively, the keyboards could be sold "as is" for $7,900.

Required:

Question: What is the net advantage or disadvantage of re-working the keyboards? Please provide description of why certain numbers are utilized?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Net advantage or disadvantage of re-working the keyboards
Reference No:- TGS0883500

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