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Coronado, Inc. has 9600 obsolete calculators, which are carried in inventory at a cost of $ 20100. If the calculators are scrapped, they can be
Coronado, Inc. has 9600 obsolete calculators, which are carried in inventory at a cost of $ 20100. If the calculators are scrapped, they can be sold for $1.30 each (for parts). If they are repackaged, at a cost of $ 14300, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen and why? Repackage, receive operating income of $ 9700 Scrap:incremental loss is $ 7620 Scrap: operating Income is $ 2780 greater Repackages revenue is $ 5800 greater than cost
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