Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $64,000 to produce 1,500 units that can be sold now for $75,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $285 per unit. If Holmes processes further, the units can be sold for $415 each. Should Holmes sell the product now or process it further? Sales Additional processing costs Income (loss) The company should: Sell as is Process Further Incremental Amount

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $64,000 to produce 1,500 units that can be sold now for $75,500 to another manufacturer. Alternatively. Holmes can process the units further at an incremental cost of $285 per unit. If Holmes processes further, the units can be sold for $415 each. Should Holmes sell the product now or process it further