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Varto Company has 10,000 units of its product in inventory that it produced last year at a cost of $155,000. This year's model is better

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Varto Company has 10,000 units of its product in inventory that it produced last year at a cost of $155,000. This year's model is better mhan last year's, and the 10,000 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 $110,000 or (2) they can be processed further at an additional cost of $216,600 and then sold for $320,000 (a) Prepare a sell as is or process further analysis of income effects. (b) Should Vorto sell the products as is or process further and then sell them? Answer is complete but not entirely correct. (a) Sell or Process Analysis Sell As Is Process Further Revenue 110,000 320,000 Costs (155,000) (371,600) Income (45,000) $ (51,600) Incremental income (oss) to sell as is $ (6.600) (b) The company should Sell as is

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