Exercise 23-5 Sell or process further LO P2 Varto Company has 13,800 units of its sole product in inventory that it produced last year at a cost of $34 each. This year's model is superior to last year's, and the 13,800 units cannot be sold at last year's regular selling price of $40 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $11 each or (2) they can be processed further at a cost of $214,600 and then sold for $26 each. Should Varto sell the products as is or process further and then sell them