Exerclse 23.5(Algo) Sell or process LO P2 Varto Company has 11,800 units of...

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Accounting

Exerclse 23.5(Algo) Sell or process LO P2
Varto Company has 11,800 units of its product in inventory that It produced last year at a cost of $153,000. This year's model is better
than last year's, and the 11,800 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for these
units: (1) They can be sold as is to a wholesaler for $165,200 or (2) they can be processed further at an addltional cost of $183,600 and
then sold for $342,200.
(a) Prepare a sell as is or process further analysis of income effects.
(b) Should Varto sell the products as is or process further and then sell them?
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