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Varto Company has 11,000 units of its product in inventory that it produced last year...

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Accounting

Varto Company has 11,000 units of its product in inventory that it produced last year at a cost of $151,000. This years model is better than last years, and the 11,000 units cannot be sold at last years normal selling price of $38 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $132,000 or (2) they can be processed further at an additional cost of $183,600 and then sold for $308,000. (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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