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Sheridan, Inc, has 9900 obsolete calculators, which are carried in inventory at a cost of $19600. If the calculators arescrapped, they can be sold for
Sheridan, Inc, has 9900 obsolete calculators, which are carried in inventory at a cost of $19600. If the calculators arescrapped, 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 $2.40 per unit. What alternative should be chosen, and why? Repackage; revenue is $4700 greater than cost Repackage: receive operating income of $8860 Scrap, incremental loss is $8710 Scrap; operating income is $2030 greater
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