Question
Bunyon Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $556 per hbf.
Bunyon Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $556 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $528 per hbf, which can be sold for $752 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.
Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
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