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?

Scrap; profit is $2990 greater.

Repackage; revenue is $6000 greater than cost.

Scrap; incremental loss is $7980.

Repackage; receive profit of $9130.