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Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores f

Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores for $2.60 per unit. What alternative should be chosen, and why?

Scrap; profit is $3760 greater.

Repackage; revenue is $5400 greater than cost.

Scrap; incremental loss is $7120.

Repackage; receive profit of $10520.


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Coronado Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $21400. If the calculators are scrapped, they can be sold for $1.40 each (for parts). If they are repackaged, at a cost of $16000, they could be sold to toy stores f
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