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.



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  • CreatedNovember 29, 2013
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