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A company has already spent $15,000 to harvest potatoes. The potatoes can be sold as is for $270,000. Instead the company could incur further processing

A company has already spent $15,000 to harvest potatoes. The potatoes can be sold as is for $270,000. Instead the company could incur further processing costs of $144,000 to convert the potatoes to french-fries. If the resulting french-fries can be sold for $378,000, converting the potatoes to french-fries increases income by $36,000

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