Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $78,000 to produce 1,675 units that can be sold now for $85,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $290 per unit. If Holmes processes further, the units can be sold for $430 each. Compute the incremental income if Holmes processes further. Sell as is Process Further Incremental Amount Sales Additional processing costs Income (loss) The company should: Solution Incremental analysis :Sell as isProcess furtherIncremental amountSales855001675*430 = 720250634750Additional processing cost01675*290 = 485750-485750Income (loss)85500234500149000The company shouldProcess further.