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Varto Company has 7000 units of its sole product in inventory that it produced last year atcost of$22 each. This year's model is superior to
Varto Company has 7000 units of its sole product in inventory that it produced last year atcost of$22 each. This year's model is superior to last years, and the 7000 units cannot be sold ot last year's reguldr selling price of $35 each. Varto has two alternatives for these items ( they can be sold to " wholesaler for $8 each or (2) they can be reworked ot a cost of S125.000 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. Revenue it processed further Revenue if sold as is Incremental revenue ncremental net income(Loss) The company should
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