Exercise $25-5($Algo$)$ Sell or process LO P$2$

Varto Company has $7,400$ 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 $7,400$ units cannot be sold at last year's normal selling price of $$38$ each. Varto has two alternatives for these

units: $(1)$ They can be sold as is to a wholesaler for $$111,000$ or $(2)$ they can be processed further at an additional cost of $$140,400$ and

then sold for $$244,200.$

$($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?

Answer is complete but not entirely correct.