Holmes Company produces a product that can be either sold as is or processed further Holmes has already spent $50.000 to produce 1.275 units that can be sold now for $75,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of 5285 per unit. If Holmes processes further the units can be sold for $405 each Should Holmes sell the product now or process it further? Silsis Process Forther Incremental Amount Sales Additional processing Cost Income (6) The company should Varto Company has 9,800 units of its sole product in inventory that it produced last year at a cost of $25 each. This year's model is superior to last years, and the 9800 units cannot be sold at last year's regular selling price of $44 each Varto has two alternatives for these items (1) they can be sold to a wholesaler for 514 each or (2) they can be processed further at a cost of $164 700 and then sold for $30 each. Should Varto sell the products as is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ALOMONAL PROCESSING Revenue il processed further Revene i soldats incremental revenue incrementalne income Los) $ 0 The company should A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19.000 detective units that cost $5 60 per unit to manufacture. The units can be a) sold as is for $3 40 each, or b) reworked for $480 each and then sold for the full price of $900 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sales Scrap Rework Incremental income oss 5 05 The company should