Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $36 per unit. Normally, 42,000 units are sold each year. Variable unit cost data on the assembly are as follows:

Direct material	$10
Direct labor	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 $43 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 $220,000.

Prepare an analysis showing whether Jensen should process the assemblies further. Use a negative sign with answer to only indicate an income loss from processing assemblies further; otherwise do not use negative signs with your answers.

Sell of Process Further Differential Analysis
Differential revenue	$Answer
Differential costs
Direct material	Answer
Direct labor	Answer
Variable overhead	Answer
Fixed costs	Answer
Additional income (loss) from processing further	$Answer