Answer:
$8,800
Explanation:
Cost of calculators with upgrade :
$26,800 + $10,000 = $36,800
Selling Price of Calculators after upgrade =$30,000
Loss on selling after upgrade = $36,800-$30,000
=$6,800 loss
Selling price of calculators without upgrade = $11,200
Loss on selling without upgrade = $26,800 - $11,200 =$15,600
It is therefore advisable to upgrade the calculators becauseTolar Corporation would incur loss of $8,800 which is ($15,600-$6,800)after upgradation and in a case in which it does not upgrade,it will incur a loss of$15,600.
Therefore it will have a financial advantage of $8,800