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Calgary Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $540 per hbf.

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Calgary Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $540 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $524 per hbf, which can be sold for $780 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1 ) or process further into finished-cut lumber (Alternative 2). Differential Analysis b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2)

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