Let's say that our country produces only bread and apples (both final goods). In year 1, we produce 10 loaves of bread at $3 each, and 20 apples at $1 each. In year 2, we produce 8 loaves of bread at $2 each, and 25 apples at $1.25 each. Using year 1 as the base year (for constant prices), what is real GDP in year 1 and real GDP in year 2?

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.