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Waterway, Inc, has 9600 obsolete calculators, which are carried in inventory at a cost of $19600. If the calculators are scrapped, they can be sold
Waterway, Inc, has 9600 obsolete calculators, which are carried in inventory at a cost of $19600. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $14700, they could be sold to toy stores for $2.40 per unit. What alternative should be chosen, and why? Scrapi incremental loss is $9040 Scrap; operating income is $2220 greater Repackage; receive operating income of $8340 Repackage; revenue is $4900 greater than cost
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