Exercise $23-5($Algo$)$ Sell or process LO P$2$

Varto Company has $11,400$ units of its product in inventory that it produced last year at a cost of $$151,000.$

This year's model is better than last year's, and the $11,400$ units cannot be sold at last year's normal selling

price of $$54$ each. Varto has two alternatives for these units: $(1)$ They can be sold as is to a wholesaler for

$$159,600$ or $(2)$ they can be processed further at an additional cost of $$154,900$ and then sold for

$$307,800.$

$($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?Varto Company has $11,400$ units of its product in inventory that it produced last year at a cost of $$151,000.$ This year$$s model is better than last year$$s$,$ and the $11,400$ units cannot be sold at last year$$s normal selling price of $$54$ each. Varto has two alternatives for these units: $(1)$ They can be sold as is to a wholesaler for $$159,600$ or $(2)$ they can be processed further at an additional cost of $$154,900$ and then sold for $$307,800.$

$($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?