Varto Company has 12,400 units of its product in inventory that it produced last year at a cost of $153,000. This year's model is better than last year's, and the 12,400 units cannot be sold at last year's normal selling price of $35 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $148,800 or (2) they can be processed further at an additional cost of $167,700 and then sold for $310,000. (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? (a) Sell or Process Analysis Sell As Is Process Further Revenue Costs Income Incremental income (loss) to sell as is (b) The company should: Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.1 pounds of the material, Ike uses 2.1 pounds of the material, and Bix uses 6.6 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Kin Selling price per unit Variable costs per unit $ 150.73 88.00 Ike $ 108.21 87.00 Bix $ 211.90 136.00 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Product Contribution Margin Kin Ike Bix Contribution margin per pound Order in which management should produce and meet demand