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Varto Company has 11,400 units of its product in Inventory that it produced last year at a cost of $158,000. This year's model is better

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Varto Company has 11,400 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 11,400 units cannot be sold at last year's normal selling price of $50 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $136,800 or (2) they can be processed further at an additional cost of $246,200 and then sold for $376,200. (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? (a) Sell or Process Analysis Revenue Answer is complete but not entirely correct. Sell As Is Process Further $ 136,800 S 376,200 158,000 404,200 $ 294.800 S (28,000) Costs Income Incremental income (loss) to sell as is $ 266,800 (b) The company should Sell as is

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