23.3hw

Varto Company has 9,600 units of its product in inventory that it produced last year at a cost of $150,000. This year's model is better than last year's, and the 9,600 units cannot be sold at last year's normal selling price of $51 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $134,400 or (2) they can be processed further at an additional cost of $171,200 and then sold for $297,600. (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