Toys Ahoy! has 1,730 action figures in inventory that cost $6.39 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 $1,145 (for transportation and landfill fees); Option 2-rework all of the action figures, at a total cost of $1,468 in labor and materials, and sell them to a local toy store for a total of $762.