Holmes company produces a product that can be either sold as is or processed further. holmes has already spent $50,000 to produce 1,250 units that can be sold now for $67,500 to another manufacturer. alternatively, holmes can process the units further at an incremental cost of $250 per unit. if holmes processes further, the units can be sold for $375 each. compute the incremental income if holmes processes further.

howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?