Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $72,000 to produce 1,275 units that can be sold now for $85,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $290 per unit. If Holmes processes further, the units can be sold for $470 each. Should Holmes sell the product now or process it further?

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $72,000 to produce 1,275 units that can be sold now for $85,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $290 per unit. If Holmes processes further, the units can be sold for $470 each. Should Holmes sell the product now or process it further? Sell as is Process Further Incremental Amount Sales Additional processing costs Income (loss) The company should