Melvin has been a member of the American Arbitration Association and long-standing faculty member of the business school of a university for over a decade. Right now, he is on a plane headed for Detroit, where he will serve as an arbitrator between members of the United Auto Workers union and management of a major auto manufacturer. His responsibilities will deal with

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.