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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $82,000 to produce 1,925 units
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $82,000 to produce 1,925 units that can be sold now for $95,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $295 per unit. If Holmes processes further, the units can be sold for $430 each. Should Holmes sell the product now or process it further? Incremental Sell as is Process Further Amount Sales Additional processing costs $ 95,500 + Income (loss) $ 95.500 The company should: Process further
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