7.

Sell or Process Further Jackson Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $554 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $521 per hbf, which can be sold for $780 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Sell Process Differential Rough-Cut Further into Effect (Alternative 1) Finished Cut on Income (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. $