Cobe Company has already manufactured 25,000 units of Product A at a cost of $15 per unit. The 25,000 units can be sold at this stage for $500,000. Alternatively, the units can be further processed at a $250,000 total additional cost and be converted into 5,100 units of Product B and 12,000 units of Product C. Per unit selling price for Product B is $102 and for Product C is $56. 1. Prepare an analysis that shows whether the 25,000 units of Product A should be processed further or not? Sell as is Process Further Sales Relevant costs: Total relevant costs Income loss) Incremental net income (or loss) if processed further The company should Varto Company has 13,000 units of its sole product in inventory that it produced last year at a cost of $32 each. This year's model is superior to last year's, and the 13,000 units cannot be sold at last year's regular selling price of $50 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $13 each or (2) they can be processed further at a cost of $241,000 and then sold for $31 each. Should Varto sell the products as is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue If processed further Revenue if sold as is Incremental revenue 0 Incremental net income(Loss) $ 0 The company should