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Varto Company has 12,600 units of its product in inventory that it produced last year...

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Accounting

Varto Company has 12,600 units of its product in inventory that it produced last year at a cost of $156,000. This year's model is better
than last year's, and the 12,600 units cannot be sold at last year's normal selling price of $44 each. Varto has two alternatives for these
units: (1) They can be sold as is to a wholesaler for $151,200 or (2) they can be processed further at an additional cost of $245,900 and
then sold for $390,600.
(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?
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