Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $39 per unit. Normally, 45,000 units are sold each year. Variable unit cost data on the assembly are as follows: Direct material Direct labor $10 8 Variable manufacturing overhead 4 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 $46 per unit. If the company does this, material 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 level of $160,000 to $235,000. Prepare an analysis showing whether Jensen should process the assemblies further. Use a negative sign with answer to only indicate a loss from processing assemblies further; otherwise do not use negative signs with your answers. Sell of Process Further Differential Analysis Differential revenue Differential costs $ Direct material Direct labor Variable overhead Fixed costs Additional income (loss) from processing further $