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Varto Company has 7,000 units of its sole product in inventory that it produced last...

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Accounting

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Varto Company has 7,000 units of its sole product in inventory that it produced last year at a cost of $22 each. This year's model is superior to last year's, and the 7,000 units cannot be sold at last year's regular selling price of $35 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each or (2) they can be reworked at a cost of $125,000 and then sold for $25 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them CREMENTAL REVENUE AND COST OF ADDITIONA PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue incremental net income(Loss) The company should

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