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Instructions Big Fork Lumber Company incurs a cost of $480 per hundred board feet (hof) in processing certain rough-out lumber. which it sells for $607
Instructions Big Fork Lumber Company incurs a cost of $480 per hundred board feet (hof) in processing certain "rough-out" lumber. which it sells for $607 per hof. An alternative is to produce a "finished-cut" at a total processing cost of $543 per hof. which can be sold for $725 per hof. Required 1. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Refer to the lists of Labels and / punt Desc ations for the exac iswer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. 2. Determine whether the company should sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Labels and Amount Descriptions Labels and Amount Descriptions August 9 Costs, per 100 board fit. Income (Loss), per 100 board ft. Revenues, per 100 board ft. Differential Analysis 1. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required Differential Analysis Sell Rough-Cut (Alternative 1) or Process Further into Finished-Cut (Alternative 2) (Label) Sell Rough-Cut Process Further Differential Effect into Finished-Cut on Income (Alternative 1) (Alternative 2) (Alternative 2) Final Question 2. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). The company is indifferent since the result is the same regardless of which alternative is chosen. O Process further and sell finished-cut lumber O Sell rough-cut lumber
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