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Exerclse 23-5(Algo) Sell or process LO P2 Varto Company has 12,800 units of...

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Accounting

Exerclse 23-5(Algo) Sell or process LO P2
Varto Company has 12,800 units of its product in inventory that it produced last year at a cost of $154,000. This year's model is better than last year's, and the 12,800 units cannot be sold at last year's normal selling price of $53 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $179,200 or (2) they can be processed further at an additional cost of $186,300 and then sold for $358,400.
(o) 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?
\table[[(a) Sell or Process Analysis,Sell As Is],[Revenue,],[Costs,],[Income,],[,],[Incremental income (los) to sell as is,],[,]]
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