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10-05-2020
Business

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Vaughn Manufacturing has several outdated computers that cost a total of $17800 and could be sold as scrap for $5000. They could be updated for an additional $2000 and sold. If Vaughn updates the computers and sells them, net income will increase by $9000.

At what price were the updated versions sold?

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arvindbhaskar arvindbhaskar

11-05-2020

Sale of outdated products generates $5000
Net income after updating = $5000 + $9000 = $14000
Gross sale value of updated product = $14000 + $2000 = $16000

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