Sheffield, Inc. has 10200 obsolete calculators, which are carried in inventory at a cost of $20800. If the calculators are scrapped, they can be sold for $1.20 each (for parts). If they are repackaged, at a cost of $14700, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

Scrap; incremental loss is $8560

Repackage; receive operating income of $10800

Scrap; operating income is $1440 greater

Repackage; revenue is $6100 greater than cost