Calgary Lumber Company incurs a cost of $450 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $606 per hbf. An alternative is to produce a finished cut at a total processing cost of $543 per hbf, which can be sold for $737 per hbf.

	Required:
1.	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). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2.	Determine whether the company should sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).

1. 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). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis

Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (Alternative 2)

March 15

1		Sell Rough-Cut	Process Further into Finished-Cut	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
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