The ROCG bookstore bought more ‘Buckeye Champs’ calendars than it could sell. It was nearly June and 200 calendars remained in stock. The store paid €4.50 each for the calendars and normally sold them for €8.95. Since February they had been on sale for €6.00 and 2 weeks ago the price was dropped to €5.00. Still, few calendars were being sold. The bookstore manager thought it was no longer worthwhile using shelf space for the calendars. The proprietor of Hurricane Collectibles offered to buy all 200 calendars for €100. He intended to sell them as novelty items. The bookstore manager was not sure she wanted to sell for €.50 calendars that cost €4.50. The only alternative, however, was to scrap them because the publisher would not take them back.

1. Compute the difference in profit between accepting the €100 offer and scrapping the calendars.

2. Describe how the €4.50 × 200 = €900 paid for the calendars affects your decision.