Compute the incremental income if holmes processes further

Reference no: EM131763899

Question: Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $50,000 to produce 1, 250 units that can be sold now for $67, 500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $375 each. Compute the incremental income if Holmes processes further.

Reference no: EM131763899

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