Gribskov Sawmill processes trees from the close forest district and produce various wood products such as lumber and boards. All products can be sold 'as they are' or they can be processed further to different types of finished products such as windows, doors and stairs. The firm considers this process as a split-off-process. The five products are listed in table 1 given the production of one batch of trees: Product Intermediate sales | Finished sales price per ton price per ton C Number of tons wood used per batch 1.2 3 4.5 5 6.3 850 650 600 710 400 1.000 850 695 825 400 The net cash outflow to process one batch of tree into the five separate wood products is 9,000 DKK per batch and the net cash outflow to convert each intermediate product into a finished product is 125 DKK per ton. Required 1. If Gribskov Sawmill's cost to process trees into the five wood products is 9,000 DKK, which of the five products should Gribskov Sawmill process after the split off point? 2. Assuming that the quantities and prices in the table do not change, how much can the 9,000 DKK cost to process one batch rise before Gribskov Sawmill should stop processing trees into the five wood products? 3. Assuming that the cost to process trees into the five wood products is 9,000 DKK, and given your decision in question 1, calculate the profit per ton of each of the five wood products after allocating the 9,000 DKK processing cost to the five wood products using: a. Tons of wood products produced b. Net Realizable Value (NRV) of the wood products produced 4. Given the allocation of the 9,000 DKK cost of processing trees in question 3, do you want to change any of your decisions in question 1, assuming your objective is to maximize the net cash flow for Gribskov Sawmill