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Varto Company has 11,400 units of its product in inventory that it produced last year at a cost of $154,000. This years model is better

Varto Company has 11,400 units of its product in inventory that it produced last year at a cost of $154,000. This years model is better than last years, and the 11,400 units cannot be sold at last years normal selling price of $52 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $125,400 or (2) they can be processed further at an additional cost of $234,100 and then sold for $353,400. (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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(a) Sell or Process Analysis Sell As Is Process Further Revenue Costs Income 0 $ 0 Incremental income (loss) to sell as is (b) The company should

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