Romulus Company has 21,000 units of its sole product that it produced last year at a cost of $67 each.This year's model is superior to last year's and the 21,000 units cannot be sold for their regular selling price of $102 each.Romulus has two alternatives for these items: (1)they can be sold to a wholesaler for $38 each,or (2)they can be reworked at a total cost of $258,000 and then sold for $73 each.The company has enough idle capacity to rework these items without affecting any new production.Which choice would increase the company's profits the most?

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The Answer of Romulus Company has 21,000 units of its sole product that it produced last year at a cost of $67 each.This year's model is superior to last year's and the 21,000 units cannot be sold for their regular selling price of $102 each.Romulus has two alternatives for these items: (1)they can be sold to a wholesaler for $38 each,or (2)they can be reworked at a total cost of $258,000 and then sold for $73 each.The company has enough idle capacity to rework these items without affecting any new production.Which choice would increase the company's profits the most?

Romulus Company Has 21,000 Units of Its Sole Product That