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QS 23-10 Sell or process further LO A1 Holmes Company produces a product that can be either sold as is or processed further.

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Answer #1
Sell as is Process further Incremental amount
Sales 95500 800250 704750
Additional processing cost 0 486750 486750
Incoem (Loss) 95500 313500 218000
Company should accept the order. so they can earn an additional income of $218,000
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