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can you show step by step calculations and what each value represents? Oregon Lumber has a raw lumber division and a finished lumber division. The
can you show step by step calculations and what each value represents?
Oregon Lumber has a raw lumber division and a finished lumber division. The variable costs are as follows: - Raw lumber division: $140 per 100 board-feet of raw lumber - Finished lumber division: $165 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 $190 per 100 board-feet Finished lumber can be sold at $340 per 100 board-feet. Read the requirements. Requirement 1. Should Oregon 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 sig when entering losses.) Requirements 1. Should Oregon 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 Oregon 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 interest of Oregon Lumber as a whole? Explain Step by Step Solution
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