Varto Company has 13,600 units of its sole product in inventory that it produced last year at a cost of $32 each.
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Varto Company has 13,600 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 13,600 units cannot be sold at last year's regular selling price of $52 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $13 each or (2) they can be processed further at a cost of $238,700 and then sold for $30 each. Should Varto sell the products as is or process further and then sell them?Q8.PNG

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