$12$

Exercise $23-5$ Sell or process further LO P$2$

Varto Company has $8,800$ units of its sole product in inventory that it produced last year at a cost of $$34$ each. This year's model is superior to last year's, and the $8,800$ units cannot be sold at last year's regular selling price of $$48$ each. Varto has two alternatives for these items: $(1)$ they can be sold to a wholesaler for $$15$ each or $(2)$ they can be processed further at a cost of $$173,600$ and then sold for $$34$ each. Should Varto sell the products as is or process further and then sell them?

$03$:$58$:$29$

$\backslash$table$[[$INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING$],[$Revenue if processed further,$],[$Revenue if sold as is$,],[$Incremental revenue,$\frac{?}{\text{b}\text{a}\text{r}}(0)$