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Varto Company has 7,000 units of its product in inventory that it produced last year at a cost of $154,000. This year's model is better
Varto Company has 7,000 units of its product in inventory that it produced last year at a cost of $154,000. This year's model is better than last year's, and the 7,000 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 $56,000 or [2] they can be processed further at an additional cost of $125,000 and then sold for $175,000. In] Prepare a sell as is or process further analysis of income effects. tb} Should Varto sell the products as is or process further and then sell them? Revenue Costs Income Incremental income (loss) to sell as is [b] The company should
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