Holmes Company produces a product that can be either sold as is or processed further....
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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produce 1,950 units that can be sold now for $73,500 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 $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
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