Jack's Lumber Yard receives 8,000 large trees each period that it subsequently processes

into rough logs by stripping off the tree bark and leaves (i.e., one tree equals one log).

Jack's then must decide whether to sell its rough logs (for use in log cabin construction) at

split-off or to process them further into refined lumber (for use in reqular construction

framing). Jack's normally sells logs for a per-unit price of $495. Alternately, each log can

be processed further into 800 board feet of lumber at an additional cost of $0.15 per board

foot. Also, lumber can be sold for $0.75 per board foot.

1. What is the contribution to income from selling the logs for log cabin construction?

2. What is the contribution to income from processing the logs into lumber?