Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $41 per unit. Normally, 41,000 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 $48 per unit. If the company does this material and labor costs willl each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level f $160,000 to $215,000. 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 Differential costs Direct material 0 Direct labor 0 Variable overhead Fixed costs Additional income (loss) from processing further Check