Chunderbuggle Ltd is a lumber company. Day-to-day operations consist of cutting down trees and processing logs into slabs of timber.

During this process, sawdust is produced in large quantities. The company can sell sawdust for $20 per tonne.

The company has the option of pressing this sawdust into cardboard by using a special machine. It can then sell cardboard for $60 per tonne.

In deciding whether to produce cardboard, managers must consider:

Select one:

a.The joint costs of producing timber and sawdust

b.The incremental costs of producing cardboard

c.The incremental contribution of producing and selling cardboard

d.The incremental revenues of selling cardboard