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Toys Ahoy! has 1,070 action figures in inventory that cost $6.35 per unit to produce. Due to changing consumer preferences, the sales department is having
Toys Ahoy! has 1,070 action figures in inventory that cost $6.35 per unit to produce. Due to changing consumer preferences, the sales department is having great difficulty selling the action figures, and Toys Ahoy! must choose between two options. Option 1-scrap (dispose of) the action figures at a total cost of $1070 (for transportation and landfill fees); Option 2-rework all of the action figures, at a total cost of $1453 in labor and materials, and sell them to a local toy store for a total of $879. Question: What is the value of reworking the action figures and selling them to the toy store
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