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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $84,000 to produce 1,775 units that
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $84,000 to produce 1,775 units that can be sold now for $71,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $260 per unit. If Holmes processes further, the units can be sold for $385 each. Should Holmes sell the product now or process it further? Sell as is Process Further Incremental Amount Sales $ 71,500 $ $ 611,875 683,375 18 0 Additional processing costs Income (loss) The company should
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