Calgary Lumber has a Raw Lumber Division and a Finished Lumber Division. The variable costs are: Raw Lumber Division: $70 per 100 board feet of raw lumber Finished Lumber Division: $110 per 100 board feet of finished lumber Assume that there is no board feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $140 per 100 board feet. Finished lumber can be sold at $360 per 100 board feet. Required Required Re Be Ba Re Ex Be a - X sign when entering losses.) 1. Should Calgary Lumber process raw lumber into its finished form? Show your calculations. 2. Assume that internal transfers are made at 125% of variable cost. Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. 3. Assume that internal transfers are made at market prices. Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. me contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? ers to the nearest whole dollar. Enter "0" for any revenues or costs that do not occur. Use parentheses or Print Done Requirement 1. Should Calgary Lumber process raw lumber into its finished form? Show your calculations. Begin by selecting the formula you will use to make your decision. Then, enter the amounts in the formula. (Use parentheses or a minus sign when entering losses.) = Gain/(Loss) on further processing Based on above, Calgary Lumber process raw lumber into its finished form. Requirement 2. Assume that internal transfers are made at 125% of variable cost. Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. Begin by calculating each division's operating income under both actions. Start with the decision to sell as raw lumber. (Round your answers to the nearest whole dollar. Enter "0" for any revenues or costs that do not occur. Use parentheses or a minus sign when entering losses.) Sell as Raw Lumber Sell as Finished Lumber Raw Lumber Division: Division revenues Division variable costs Division operating income (loss) Raw Lumber Division: Division revenues Division variable costs Division operating income (loss) Finished Lumber Division: Division revenues Transferred-in costs Division variable costs Division operating income (loss) Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. The Raw Lumber Division will maximize reported division operating income by The Finished Lumber Division will maximize division operating income by which which the action preferred by the company as a whole. the action preferred by the company as a whole. Requirement 3. Assume that internal transfers are made at market prices. Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. Begin by calculating each division's operating income under both actions. Start with the decision to sell as raw lumber. (Enter an amount in each input cell. Use parentheses or a minus sign when entering losses.) Raw Lumber Division: Division revenues Division variable costs Division operating income (loss) Finished Lumber Division: Division revenues Transferred-in costs Division variable costs Division operating income (loss) Sell as Sell as Raw Lumber Finished Lumber Will each division maximize its division operating-income contribution by adopting the action that is in the best interests of Calgary Lumber as a whole? Explain. The Raw Lumber Division will maximize reported division operating income by The Finished Lumber Division will maximize division operating income by which which the action preferred by the company as a whole. the action preferred by the company as a whole