7/32 is 5mm or so, about twice what it should be.
However, it was probably supplied at 5/32 or 6/32 to avoid returns - that's how modern, cheaper ukes are supplied. I suspect the rest is the top rising up over time, rather than the body distortion which leads to neck resets.
The pic is too low-res to be sure, but that looks like a one piece bridge/saddle combo about 1/2 inch high. You want to lower the action 3/32 at the 12th = 3/16 off the bridge, which would still leave it plenty high enough for my taste. Plane, reshape and compensate saddle, easy!
If it does need a reset prepare for some detective work. Ask on Ukulele Underground if anyone recognises the manufacturer from the head and body shape, and what kind of neck joint was used. Might be a dovetail, might be dowels, might even just be butt jointed. This is all I can find immediately, suggests a dovetail.
http://fretsnet.ning.com/forum/topics/h ... e-neck-set Spanish heel is unlikely, but you should be able to detect that by looking inside.
$75 seems pretty good to me if you can make it play nicely.
