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25 ? 5 Calgary Lumber Company incurs a cost of 5372 per hundred board feot (hbf) in processing certain rough-cut lumber, which it sells for

25 ? 5
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Calgary Lumber Company incurs a cost of 5372 per hundred board feot (hbf) in processing certain "rough-cut" lumber, which it sells for 5542 per hbt, An aitemative is to produce a "finished-cut" at a total processing cost of $528 per hbo, which can be sold for $746 per hbt. a. Prepare a differential analysts dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Differential Analysis Fendtack F CheckMy Wont For both products, fubtract the costs from the revenues, per. 100 board ft. Determine the differential effect on income of the revenues, costs, and proft (loss) by subtracting aitemative 1 from alternative 2 . b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2 ). Process further and sell finished-cut lumber. vv

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