The Steel Can Company has 100,000 obsolete cans in inventory at a cost of $5,000.The cans can be cut in half to make candle holders for $1,000.The candle holders can be sold for $1,750 in total.If the cans are scrapped, they could be sold for $450.

Which alternative should the Steel Can Company accept and what is the relevant profit from the alternative? Support your answers with the calculations you used to make your decision.