EXERCISE 7-11. Additional Processing Decision. DataPoint, Inc. has decided to discontinue manufacturing its Quantum model personal organizer. Currently the company has a number of partially completed personal organizers on hand. The company has spent $110 per unit to manufacture these organizers. To complete each unit, costs of $14 for material and $16 for direct labor will be incurred. In addition, $10 of variable overhead and $32 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit.

If DataPoint, Inc., completes the organizers, it can sell them for $130 per unit. Another manufacturer is interested in purchasing the partially completed organizers for $107 per unit and converting them into inventory tracking devices.

Determine whether DataPoint, Inc., should complete the personal organizers or sell them in their current state.