Varto Company has 9,000 units of its sole product in inventory that it produced last year at a cost of $33 each. This year's model is superior to last year's and the 9,000 units cannot be sold at last year's regular selling price of $51 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $12 each, or (2) they can be reworked at a cost of $196,000 and then sold for $33 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them