Sales value of the older model


A computer store has PCs for sale that cost $900 when they ordered it and it retails for $1,500. The newest model is now being manufactured. The store can replace or buy more of the old model for $100. Do you think that these facts, along with the advertising the manufacturer did in launching the new model has resulted in a decline of the sales value of the older model computers that the store has in inventory?

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Accounting Basics: Sales value of the older model
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