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Should Holmes sell the product now or process it further

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Question - Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $74,000 to produce 2,000 units that can be sold now for $81,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $280 per unit. If Holmes processes further, the units can be sold for $375 each. Should Holmes sell the product now or process it further?

Reference no: EM132602171

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