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Concord Inc. has 10500 obsolete calculators, which are carried in inventory at a cost of $20600. If the calculators are scrapped, they can be sold
Concord Inc. has 10500 obsolete calculators, which are carried in inventory at a cost of $20600. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $14900, they could be sold to toy stores for $2.30 per unit. What alternative should be chosen, and why?
Scrap; profit is $2300 greater.
Repackage; revenue is $5700 greater than cost.
Scrap; incremental loss is $9050.
Repackage; receive profit of $9250.
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