The bad feelings associated with disappointing news can generally be reduced if the receiver knows the reasons for the rejection, feels that the news was revealed sensitively, and . understands who caused the problem. b. sees that the message was presented on high-quality company letterhead. c. notices that the direct strategy was used. d. believes that the matter was treated fairly and seriously.

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.