The New York bookstore bought more Jets Champs calendars than it could sell. It was nearly June and 220 calendars remained in stock. The store paid $4.25 each for the calendars and normally sold them for $8.85. Since February, they had been on sale for $6.20, and 2 weeks ago the price was dropped to $4.95. Still, few calendars were being sold. The bookstore manager thought it was no lon- ger worthwhile using shelf space for the calendars. The proprietor of Old Orchard Collectibles offered to buy all 220 calendars for $88. He intended to store them until the 2013 football season was over and then sell them as novelty items. The bookstore manager was not sure she wanted to sell for $.40 calendars that cost $4.25. The only alternative, however, was to scrap them because the publisher would not take them back.

1. Compute the difference in profit between accepting the $88 offer and scrapping the calendars.

2. Describe how the $4.25 * 220 = $935 paid for the calendars affects your decision.