Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is for $71,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $350,000. If Holmes processes further, the peanut butter can be sold for $500,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Holmes sell as is or process further? (a) Sell or Process Analysis Revenue Costs Income (b) The company should: Sell as is Process Further
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- is Holmes Company has already spent $94,000 to harvest peanuts. Those peanuts can be sold as is for $79,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $582,625. If Holmes processes further, the peanut butter can be sold for $967,750. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Holmes sell as is or process further? (a) Sell or Process Analysis Revenue Costs Income (b) The company should: Sell as is Process FurtherHolmes Company has already spent $56,000 to harvest peanuts. Those peanuts can be sold as is for $81,500. Alternatively, Holmes can process further into peanut butter at an additional cost of $390,000. If Holmes processes further, the peanut butter can be sold for $660,000.(a) Prepare a sell as is or process further analysis of income effects.(b) Should Holmes sell as is or process further? (a) Sell or Process Analysis Sell as is Process Further Revenue Costs Income (b) The company should: Process furtherA company has already spent $5,000 to harvest tomatoes. The tomatoes can be sold as is for $90,000. Instead, the company could incur further processing costs of $48,000 and sell the resulting salsa for $126,000. (a) Prepare a sell as is or process further analysis of income effects.. (b) Should the company sell as is or process further? Answer is complete but not entirely correct. Process (a) Sell or Process Analysis Sell as is Further Revenue $ 92,880 S 130,000 Costs Income S 01 49,500 $ 92,880 S 80,500 (b) The company should Sell as is
- A company has already spent $5,180 to harvest tomatoes. The tomatoes can be sold as is for $93,240. Instead, the company could incur further processing costs of $49,700 and sell the resulting salsa for $130,500. Prepare a sell as is or process further analysis of income effects.Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000, These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cablnets. Further processing costs would be $12.000, and the finished cabinets could be sold for $80,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? 8 Answer is complete but not entirely correct. (a) Sell or Process Analysis Process Further Sell As is Revenue 60,000 Os 30.000 Costs 02000 12.000 Income 10.000 Os 18.000 Incrementa Income (loss) to process further 8.000 (b) The company should Process furtherCobe Company has manufactured 240 partially finished cabinets at a cost of $60,000. These can be sold as is for $72,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $14,400, and the finished cabinets could be sold for $96,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? (a) Sell or Process Analysis Revenue Costs Income Incremental income (loss) to process further (b) The company should: Sell As Is Process Further
- Cobe Company has manufactured 255 partially finished cabinets at a cost of $63,750. These can be sold as is for $76,500. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $15,300, and the finished cabinets could be sold for $102,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? (a) Sell or Process Analysis Sell As Is Process Further Revenue Costs Income Incremental income (loss) to process further (b) The company should:McPupper Steel has products that cost $10,500 to manufacture. The products can be sold as is for $13,000 or could be processed further for a cost of $2,100 and sold for $14,000. What would be the incremental profit or (loss) of processing the products further and selling them instead of selling them as is?Cobe Company has manufactured 225 partially finished cabinets at a cost of $56,250. These can be sold as is for $67,500. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $13,500, and the finished cabinets could be sold for $90,000.(a) Prepare a sell as is or process further analysis of income effects.(b) Should the cabinets be sold as is or processed further and then sold?
- National Chemical Company manufactures a chemical compound that is sold for $59 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $84 per gallon. National expects the market for the new compound variant to be 8,400 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $159,600. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required B What would be the effect on total profit if National produces the new compound variant? if National produces the new compound, profit will Required A increase Required A Required B >National Chemical Company manufactures a chemical compound that is sold for $53 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $87 per gallon. National expects the market for the new compound variant to be 8,700 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $174,000. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? If National produces the new compound, profit will bySheffield Corp. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period: Product Sales Valueat Split-off AdditionalVariable Costs Sales Value afterFurther Processing Green lumber $158600 $21000 $166000 Rough lumber 130000 28900 181600 Sawdust 104000 22100 130000 What is the increase in profit if the products which are most profitable if processed further are processed further? $26600 $13000 $85000 $260600