Please help me and double check the answer! I will kindly thumbs up. Thank you s

Question

Please help me and double check the answer! I will kindly thumbs up. Thank you so much.

Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $60,000 to produce 2,050 units that can be sold now for $69,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $300 per unit. If Holmes processes further, the units can be sold for $420 each. Compute the incremental income if Holmes processes further. Process Incremental Sel as is Further Amount Sales Additional processing costs Income (loss) The company should:

Explanation / Answer

Current Profit = 69500 - 60000 = 9500

If it process further , New Profit = 420 *2050 -300*2050 - 60000 = 186000

Hence the company should process further as it would lead to increase in profit.

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