QS 25-8 Sell or process further LO P2 Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $76,000 to produce 1,725 units that can be sold now for $97,500 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 $465 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: Sell as is Process further