Crane, Inc. has 10300 obsolete calculators, which are carried in inventory at a cost of $19500. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $14500, they could be sold to toy stores for $2.30 per unit. What alternative should be chosen, and why?

Scrap; profit is $2140 greater.

Repackage; revenue is $5000 greater than cost.

Scrap; incremental loss is $8170.

Repackage; receive profit of $9190.