Tawstir Corporation has 800 obsolete personal computers that are carried in inventory at a total cost of $1,100,000. If these computers are upgraded at a total cost of $40,000, they can be sold for a total of $750,000. As an alternative, the computers can be sold in their present condition for $690,000.
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?
a) $20,000 advantage.
b) $20,000 disadvantage.
c) $60,000 advantage.
d) $60,000 disadvantage.