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Marigold Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are
Marigold Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
Product | Sales Value at Split-off | Additional Variable Costs | Sales Value after Further Processing |
Green lumber | $147600 | $22600 | $169800 |
Rough lumber | 112000 | 25700 | 156800 |
Sawdust | 92000 | 17500 | 117600 |
Which products should be processed further?
| Green lumber and rough lumber |
| All three products |
| Green lumber and sawdust |
| Rough lumber and sawdust |
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