Varto Company has $11,200$ units of its product in inventory that it produced last year at a cost of $$158,000.$ This year's model is better

than last year's, and the $11,200$ units cannot be sold at last year's normal selling price of $$48$ each. Varto has two alternatives for these

units: $(1)$ They can be sold as is to a wholesaler for $$134,400$ or $(2)$ they can be processed further at an additional cost of $$254,200$ and

then sold for $$380,800.$

$($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?