Holmes Company has already spent $72,000 to harvest peanuts. Those peanuts can be sold as is for $93,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $693,000. If Holmes processes further, the peanut butter can be sold for $1,200,375.

(a) Prepare a sell as is or process further analysis of income effects.
(b) Should Holmes sell as is or process further?