Varto Company has 11,400 units of its sole product in inventory that it produced last year at a cost of $29 each. This year's model is superior to last year's, and the 11,400 units cannot be sold at last year's regular selling price of $53 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $10 each, or (2) they can be reworked at a cost of $178, 100 and then sold for $25 Add: Incremental cost of processing Less: Incremental cost of processing