Need solution for Exercise 23-5:

units can be sold as scrap for $78,000 or reworked for $99,000 and then sold for $187,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? wholesaler for $56,000 or (2) they can be processed further at an additional cost of $125,000 and then sold for $175,000.(a) Prepare a sell as is or process further analysis of income effects. (b) Should Varto sell the products as or process further and then sell them? Exercise 23-5 Exercise 23-6 Sell or process Sales mix P2 P3 Varto Company has 7,000 units of its product in inventory that it produced last year at a cost of $154,000. This year's model is better than last year's, and the 7,000 units cannot be sold at last year's normal selling price of $35 each. Varto has two alternatives for these units: (1) They can be sold as is to a Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 1,600 hours per year. Colt can sell up to 500 units of Hero and 900 units of Flip per year. Selling