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Romulus Company has 21,000 units of its sole product that it produced last year at a cost of $67 each. This year's model is superior

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Romulus Company has 21,000 units of its sole product that it produced last year at a cost of $67 each. This year's model is superior to last year's and the 21,000 prior year units cannot be sold for their regular selling price of $102 each. Romulus has two alternatives for these items: (1) they can be sold to a wholesaler for $38 each, or (2) they can be reworked at a total cost of $258,000 and then sold for $73 each. Reworking these items prevents the company from starting an equal number of items of new production. Should the company rework the prior year units? Assume the regular selling price of 102 and $67 cost for new units. None of the choices are correct. Rework the items. The revenue if not reworked is $798,000, whereas the net revenue if reworked is $1,275,000 Rework the iterns. The revenue if not reworked is $798,000, whereas the net revenue if reworked is $1,000,000 Do not rework the items because the same amount of net revenue is achieved. O Do not rework the items. The revenue if not reworked is $798,000, whereas the net revenue if reworked is $540,000

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