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Problem - Varto Company has 8,400 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 8,400 units cannot be sold at last year's regular selling price of $46 each.. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $11 each or (2) they can be processed further at a cost of $191,700 and then sold for $33 each. Should Varto sell the products as is or process further and then sell them?
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