Should varto sell the products as is or process further

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Problem 1: Varto Company has 13,400 units of its sole product in inventory that it produced last year at a cost of $32 each. This year's model is superior to last year's, and the 13,400 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 $9 each or (2) they can be processed further at a cost of $327,700 and then sold for $33 each. Should Varto sell the products as is or process further and then sell them?

Reference no: EM132979164

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