Exercise 10-5 (Algo) Sell or process LO P2 Varto Company has 11,200 units of its product in inventory that it produced last year at a cost of $155,000. This year's model is better than last year's, and the 11,200 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $100,800 or (2) they can be processed further at an additional cost of $208,500 and then sold for $302,400. (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? Exercise 10-5 (Algo) Sell or process LO P2 Varto Company has 11,200 units of its product in inventory that it produced last year at a cost of $155,000. This year's model is better than last year's, and the 11,200 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $100,800 or (2) they can be processed further at an additional cost of $208,500 and then sold for $302,400. (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