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Swifty, Inc. has 9500 obsolete calculators, which are carried in inventory at a cost of $19500. If the calculators are scrapped, they can be sold
Swifty, Inc. has 9500 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 $14600, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why? Scrap; incremental loss is $9050 Repackage; receive operating income of $9150 Scrap; operating income is $1300 greater Repackage; revenue is $4900 greater than cost
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