Varto Company has $9,600$ 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$$s$,$ and the $9,600$ units cannot be sold at last year$$s normal selling price of $$55$ each. Varto has two alternatives for these units: $(1)$ They can be sold as is to a wholesaler for $$144,000$ or $(2)$ they can be processed further at an additional cost of $$112,000$ and then sold for $$249,600.$

$($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?