Tamtung Electronics has decided to discontinue its 45" flat screen television production in favor of producing 4D televisions. They currently have 500 units in work in process. They can sell the units as is for $500 each or they can complete processing and sell them for $1,000. The following information is available (costs are given per unit).
	Costs Incurred to Date		Costs per Unit to Complete
Direct Materials	300		200
Labor	200		100		500
Variable Overhead	100		100
Fixed Overhead	200		-
	800		400
Should Tamtung sell as is or process further? Prepare your solution in good form.
Tamtung Electronics
Incremental Analysis of Additional Processing
	As Is		Additional Processing		Incremental Revenue/ (Costs)
Revenue	500		1,000		500
Less:
Material	300		300		-
Labor	200		200		-
Variable overhead	100		100		-
Fixed overhead	200		200		-
	800	-	800		-
Additional processing costs
Material	-		200		200
Labor	-		100		100
Variable overhead	-		100		100
			400		400
Gain (loss) per unit	(300)		(200)		100