Which of the following is the best argument against the use of negative accounts receivable confirmations?
a. the cost-per-response is excessively high.
b. there is no way of knowing if the intended recipients received them.
c. recipients are likely to feel that in reality the confirmation is a subtle request for payment.
d. the inference drawn from receiving no reply may not be correct.

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.