Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $88,000 to produce 1,875 units that can be sold now for $89,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $255 per unit. If Holmes processes further, the units can be sold for $380 each. Should Holmes sell the product now or process it further?

I have some of the answers so you will see where there is a question mark that is what I will need assistance on.

SELL AS IS PROCESS FURTHER INCREMENTAL AMOUNT

SALES $89,500 $712,500 ?

ADDITIONAL PROCESSING COSTS ? ? 478,125

INCOME (LOSS) ? ? ?

THE COMPANY SHOULD: PROCESS FURTHER