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Calgary Lumber Company incurs a cost of $465 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $630 per hbf.

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Calgary Lumber Company incurs a cost of $465 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $630 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $566 per hbf, which can be sold for $766 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 Amount Descriptions (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in Costs, per unit which you must enter subtracted or negative numbers use a minus sign. Income (loss), per unit 2. Determine whether the company should sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Revenues, per unit 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 Process Further Differential Effect 1 Sell Rough-Cut into Finished-Cut on Income 2 (Alternative 1) (Alternative 2) (Alternative 2) 3 2. Determine whether the company should sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). O The company is indifferent since the result is the same regardless of which alternative is chosen. O Process further and sell finished-cut lumber. O Sell rough-cut lumber

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