Varto Company has 12,200 units of its product in inventory that it produced last year at a cost of $158.000.This year's model is better than last year's,and the 12,200 units cannot be sold at last year's normal selling price of $48 each.Varto has two alternatives for these units:1 They can be sold as is to a wholesaler for$158.600 or2) they can be processed further at an additional cost of $214.700 and then sold for $366.000. (a) Prepare a sell as is or process further analysis of income effects (b) Should Varto sell the products as is or process further and then sell them? Answer ls complete but not entirely correct. (a)Sellor Procass Analysis Sell AsIs Process Further S 158.600$ 366,000 158.000 372,700 S 600 S (6,700) Revenue Costs Income Incremental income (loss)to sell as is S 7,300 (b)The company should Sell as is
