Question

Corporation has 400 obsolete TV monitors that they carry in their inventory at a total cost of $576,000. If these monitors are upgraded at a total cost of $150,000, they can be sold for a total of $210,000. As an alternative, the calculators can be sold in their present condition for $11,200. Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?

a. $8 per calculator
b. $30 per calculator
c. $53 per calculator
d. $67 dollar per calculator

Answer 1

Answer: $403 per calculator

Explanation:

Assume the selling price is x.

400 calculators.

Upgrading them would cost $150,000 but if sold in present condition would fetch $11,200.

Expression would be;

400x - 150,000 = 11,200

400x = 161,200

x = 161,200/400

x = $403 per calculator