Varto Company has 8,400 units of its product in inventory that it produced last year at a cost of $157,000. This year's model is better than last year's, and the 8,400 units cannot be sold at last year's normal selling price of $52 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $100,800 or (2) they can be processed further at an additional cost of $141,200 and then sold for $235,200. (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 Sell As Is Process Further Revenue Costs Income Incremental income (loss) to sell as is (b) The company should: Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department I $ 43,000 Department M Total Department N $ 44,000 Department Department P Sales $ 82,000 $ 78,000 $ 65,000 $ 312,000 xpenses Avoidable 17,300 45, 400 18,000 21,500 51,300 153,500 Unavoidable 57,800 21, 600 5,700 54,300 20,300 71, 600 159, 700 Total exxpenses 75,100 67,000 23,700 75,800 313,200 Income (loss) $ 6,900 $ (23,000) $ 54,300 $ (10,800) $ (28, 600) $ (1,200) a. If the company plans to eliminate departments that have sales less than avoidable costs, which department(s) would be eliminated? Answer is complete and correct. Department Decision Department Keep M Department Eliminate N Department eep Department P Keep Department Eliminate T b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Answer is complete but not entirely correct. Total increase in income S (35,000)