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Exercise 23-5 (Algo) Sell or process LO P2 Varto Company has 9,400 units of its product in inventory that it produced last year at a

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Exercise 23-5 (Algo) Sell or process LO P2 Varto Company has 9,400 units of its product in inventory that it produced last year at a cost of $156,000. This year's model is better than last year's, and the 9,400 units cannot be sold at last year's normal selling price of $43 each Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $75 200 or (2) they can be processed further at an additional cost of $214,400 and then sold for $282,000 (a) Prepare a sell as is or process further analysis of income effects (6) Should Varto sell the products as is or process further and then sell them? (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? Sell As Is 75,200 $ Process Further 282,000 (a) Sell or Process Analysis Revenue Costs Income 0 $ 75,200 $ 282,000 Incremental income (loss) to sell as is (b) The company should Sell as is Exercise 23-5 (Algo) Sell or process LO P2 Varto Company has 9,400 units of its product in inventory that it produced last year at a cost of $156,000. This year's model is better than last year's, and the 9,400 units cannot be sold at last year's normal selling price of $43 each Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $75 200 or (2) they can be processed further at an additional cost of $214,400 and then sold for $282,000 (a) Prepare a sell as is or process further analysis of income effects (6) Should Varto sell the products as is or process further and then sell them? (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? Sell As Is 75,200 $ Process Further 282,000 (a) Sell or Process Analysis Revenue Costs Income 0 $ 75,200 $ 282,000 Incremental income (loss) to sell as is (b) The company should Sell as is

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