S 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 $84,000 to produce 2,175 units that can be sold now for $71,500 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 $485 each. Should Holmes sell the product now or process it further? Sell as is Process Further Incremental Amount Sales Additional processing costs Income (loss) $ 71,500 $ 1,054,875 630,750 630,750 $ 71,500 $ 424,125 The company should Process further