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S 25-7 (Algo) Sell or process LO P2 Holmes Company has already spent $100,000 to harvest peanuts. Those peanuts can be sold as is for $75,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $438,750. If Holmes processes further, the peanut butter can be sold for $780,000 (a) Prepare a sell as is or process further analysis of income effects (b) Should Holmes sell as is or process further? (a) Sell or Process Analysis Sell as in Process Further Revenue Costs Income (b) The company should: Exercise 25-3 (Algo) Sell or process LO P2 Cobe Company has manufactured 230 partially finished cabinets at a cost of $57,500. These can be sold as is for $69,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $13,800, and the finished cabinets could be sold for $92,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? Sell As Is Process Further (a) Sell or Process Analysis Revenue Costs Income Incremental Income (ons) to process further (b) The company should QS 25-10 (Algo) Scrap or rework LO P2 Rosa Company produced 1,325 defective phones due to a production error. The phones had cost $68,000 to produce. A salvage company will buy the defective phones as scrap for $39,750. It would cost Rosa $111,300 to rework the phones. If the phones are reworked, Rosa could sell them for $193,450 (a) Prepare a scrap or rework analysis of income effects. (b) Should Rosa scrap or rework the phones? Scrap Rework (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Incomo (b) The company should

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