Northern Lumber Company incurs a cost of $$378$ per hundred board feet $($hbf$)$ in processing certain "rough$-$cut" lumber, which it sells for $$552$ per hbf$.$ An alternative is to produce a "finished$-$cut" at a total processing cost of $$530$ per hbf$,$ which can be sold for $$774$ per hbf$.$

a$.$ Prepare a differential analysis dated April $21$ on whether to sell rough$-$cut lumber $($Alternative $1)$ or process further into finished$-$cut lumber $($Alternative $2).$

Differential Analysis

Sell Rough$-$Con $($Alt$.1)$ or Process Further into Finished$-$Cut $($Alt$.2)$

April $21$

Line Item Description

Revenues, per $100$ board $ft.$

$

Sell Rough$-$Cut

Process Further

Differential Effects

$($Alternative $2)$

$($Alternative $2)$

s

Costs, per $100$ board ft$.$

Profit $($Loss$),$ per $100$ board ft$.$

$$

$q,$

$ $q,$