Holmes Company has already spent $60,000 to harvest peanuts. Those peanuts can be sold as is for $75,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $492,750. If Holmes processes further, the peanut butter can be sold for $739,125.

(a) Prepare a sell as is or process further analysis of income effects.

(b) Should Holmes sell as is or process further?

(a) Sell or Process Analysis Sell as is Process Further Revenue Costs Income (b) The company should