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Calgary Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $546 per hbf.
Calgary Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $546 per hbf. An alternative is to produce a finished-cut at a total processing cost of $520 per hbf, which can be sold for $744 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)
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