A company has 33,000 units of its sole product that it produced last year at a cost of $71 each.This year's model is superior to last year's and the 33,000 units cannot be sold for their regular selling price of $127 each.The company has two alternatives for these items: (1)they can be sold to a wholesaler for $45 each,or (2)they can be reworked at a total cost of $700,000 and then sold for $53 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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