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Varto Company has 10,000 units of its product in inventory that it produced last year at a cost of $158,000. This years model is better

Varto Company has 10,000 units of its product in inventory that it produced last year at a cost of $158,000. This years model is better than last years, and the 10,000 units cannot be sold at last years normal selling price of $36 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $150,000 or (2) they can be processed further at an additional cost of $147,200 and then sold for $290,000.

(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?

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Sell As Is Process Further (a) Sell of Process Analysis Revenue Costs Income Incremental income (loss) to sell as is (b) The company should

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