Varto Company has 10,600 units of its product in inventory that it produced last year at a cost of $159,000. This years model is better than last years, and the 10,600 units cannot be sold at last years normal selling price of $54 each. Varto has two alternatives for these units:1) They can be sold as is to a wholesaler for $95,400 or (2) they can be processed further at an additional cost of $207,900 and then sold for $296,800.

(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?