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Holmes Company has already spent $ 5 2 , 0 0 0 to harvest peanuts. Those peanuts can be sold as is for $ 7

Holmes Company has already spent $52,000 to harvest peanuts. Those peanuts can be sold as is for $71,500. Alternatively, Holmes
can process further into peanut butter at an additional cost of $408,000. If Holmes processes further, the peanut butter can be sold for
$696,000.
(a) Prepare a sell as is or process further analysis of income effects.
(b) Should Holmes sell as is or process further?
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