question archive Harto Company has 7,000 units of its sole product in Inventory that it produced last year at a cost of $22 each
Harto Company has 7,000 units of its sole product in Inventory that it produced last year at a cost of $22 each
Subject:AccountingPrice: Bought3
Harto Company has 7,000 units of its sole product in Inventory that it produced last year at a cost of $22 each. This year's modelis superior to last year's, and the 7,000 units cannot be sold at last year's regular selling price of $35 each, Varto has two alternatives for these items: (1 ) they can be sold to a wholesaler for $8 each or (2) they can be processed further at a cost of $125,000 and then sold for $25 each. Should Varto sell the products as is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue il processed further Revenue if sold as is Incremental revenue 0 Incremental net income Loss $ 0 The company should
