Exercise 23-7 Scrap or rework LO A1 Varto Company has 9,800 units of its sole product in inventory that it produced last year at a cost of $28 each. This year's model is superior to last year's, and the 9,800 units cannot be sold at last year's regular selling price of $49 each. Varto has these items: (1) they can be sold to a wholesaler for $11 each, or (2) they can be reworked at a cost of $232,600 and then sold for $34 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them. two alternatives for Revenue if sold as is