Varto Company has $10,600$ units of its product in inventory that it produced last year at a cost of $$160,000.$ This year's model is better

than last year's, and the $10,600$ units cannot be sold at last year's normal selling price of $$36$ each. Varto has two alternatives for these

units: $(1)$ They can be sold as is to a wholesaler for $$159,000$ or $(2)$ they can be processed further at an additional cost of $$166,900$ and

then sold for $$318,000.$

$($a$)$ Prepare a sell as is or process further analysis of income effects.

$($b$)$ Should Varto sell the products as is or process further and then sell them?