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24) Sheffield, Inc. has 10100 obsolete calculators, which are carried in inventory at a cost of $20100. If the calculators are scrapped, they can be
24)
Sheffield, Inc. has 10100 obsolete calculators, which are carried in inventory at a cost of $20100. If the calculators are scrapped, they can be sold for $1.20 each (for parts). If they are repackaged, at a cost of $14100, they could be sold to toy stores for $2.30 per unit. What alternative should be chosen, and why? Repackage; receive operating income of $9130 O Scrap; incremental loss is $7980 Scrap; operating income is $2990 greater O Repackage; revenue is $6000 greater than costStep by Step Solution
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