2. The additional profit would result from processing rough lumber further is?

3. Which products should be processed further?

4. What is the increase in profit if the appropriate products are processed further?

Paul Bunyon Lumber Co. 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: Sales Value Sales Value after Additional Product at Split-off Variable Costs Further Processing Green lumber $159,600 $24,000 $178,000 Rough lumber 124,000 28,200 173,600 Sawdust 102,000 19,600 130,000