please show work and explain

88-11A. Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $36 per unit. Nomally, 42,000 units are sold each year. Variable unit cost data on the assembly are as follows: The company is now using only 70% of its normal capacity: it could fully use its normal capacity by processing the assembly further and selling it for $41 per unit. If the company does this, materials and labor costs will each increase by $2 ) per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current fevel of $160.000 to $180.000. Prepare an analysis showing whether Jensen should process the assemblies further