Red Car Enterprise has 8,400 units of its sole product in inventory that it produced last year at a cost of $24 each. This years model is superior to last years, and the 8,400 units cannot be sold at last years regular selling price of $44 each. Red Car Enterprise has two alternatives for these items: (1) they can be sold to a wholesaler for $12 each or (2) they can be processed further at a cost of $158,100 and then sold for $30 each. Should Red Car Enterprise sell the products as is or process further and then sell them?

INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue Incremental net income(Loss) The company should