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Holmes Company produces a product that can be either sold as is or processed further....

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Accounting

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $84,000 to produce 2,075 units that can be sold now for $81,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $260 per unit. If Holmes processes further, the units can be sold for $425 each. Compute the incremental income if Holmes processes further.

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