Question: Exercise 2 5 - 5 ( Algo ) Sell or process LO P 2 Varto Company has 1 3 , 4 0 0 units of

Exercise 25-5(Algo) Sell or process LO P2
Varto Company has 13,400 units of its product in inventory that it produced last year at a cost of $155,000. This year's model is better than last year's, and the 13,400 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 $174,200 or (2) they can be processed further at an additional cost of $181,500 and then sold for $348,400.
(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?
\table[[(a) Sell or Process Analysis,Sell As Is,Process Further],[Revenue,,],[Costs,,],[Income,,],[,,],[Incremental income (loss) to sell as is,,],[,,],[(b) The company should:,,]]
Exercise 2 5 - 5 ( Algo ) Sell or process LO P 2

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