Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is...
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Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is for $93,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $560,250. If Holmes processes further, the peanut butter can be sold for $830,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Holmes sell as is or process further? > Answer is complete but not entirely correct. Process (a) Sell or Process Analysis Sell as is Further Revenue $ 93,500 $ 830,000 Costs 66,000 626,250 Income $ 27,500 $ 203,750 x (b) The company should: Process further Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is for $93,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $560,250. If Holmes processes further, the peanut butter can be sold for $830,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Holmes sell as is or process further? > Answer is complete but not entirely correct. Process (a) Sell or Process Analysis Sell as is Further Revenue $ 93,500 $ 830,000 Costs 66,000 626,250 Income $ 27,500 $ 203,750 x (b) The company should: Process further
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