Calgary Lumber has a raw lumber division and a finished lumber division. The variable costs are as follows: Raw lumber division: $150 per 100 board-feet of raw lumber Finished lumber division: $170 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 $300 per 100 board-feet. Finished lumber can be sold at $320 per 100 board-feet. Read the requirements. 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.) Incremental revenues Incremental costs = Gain/loss) on further processing i X Requirements 1. Should Calgary Lumber process raw lumber into its finished form? Show your calculations. 2. Assume that internal transfers are made at 150% of variable cost. Will each division maximize its division operating-income contribution by adopting the action that is in the best interest of Calgary Lumber as a whole? Explain. 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 interest of Calgary Lumber as a whole? Explain. 3