Varto Company has 9,000 units of its product in inventory that it produced last year at a cost of $151,000. This years model is better than last years, and the 9,000 units cannot be sold at last years normal selling price of $46 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $117,000 or (2) they can be processed further at an additional cost of $178,000 and then sold for $288,000. (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?

Exercise 23-5 (Algo) Sell or process LO P2 Varto Company has 9,000 units of its product in inventory that it produced last year at a cost of $151,000. This year's model is better than last year's, and the 9,000 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $117,000 or (2) they can be processed further at an additional cost of $178,000 and then sold for $288,000. (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