Question: Zanatechs market for its remote control has changed significantly, and Zanatech has had to drop the selling price per unit from $45 to $38. There

Zanatechs market for its remote control has changed significantly, and Zanatech has had to drop the selling price per unit from $45 to $38. There are some units in the work in process inventory that have costs of $30 per unit associated with them. Zanatech can sell these units in their current state for $22 each. It will cost Zanatech $11 per unit to rework these units so that they can be sold for $38 each. A new employee looks at the analysis and exclaims, Well lose money with either of these alternatives! Lets just throw these units in the trash! Which alternative is preferable?

Not enough information to make a decision.

To sell the units in their current state for $22 each.

To rework the units and sell them at $38 each.

To throw the units in the trash.

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