addditional$3$Varto Company has $12,600$ units of its product in Inventory that It produced last year at a cost of $$157,000.$ This year's model is better

than last year's, and the $12,600$ units cannot be sold at last year's additiona$3$lnormal selling price of $$38$ each. Varto has two alternatives for these

units: $(1)$ They can be sold as is to a wholesaler for $$189,000$ or $(2)$ they can be processed further at an additional cost of $$245,500$ and

then sold for $$428,400.$

$($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?