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Northern Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $564 per hbe.

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Northern Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $564 per hbe. An attemative is to produce a "finished-cut" at a total processing cost of $524 per hbf, which can be sold for $766 per hbf. a. Prepare a differential analysis dated April 21 on whether to sell rough-cut lumhar ialianak- 1 ) or process further into finished-cut lumber (Alernative 2). Feedtuch Tcheck My Work For both products, subtract the costs from the revenues, per 100 board f. Determine the differential effect on income of the revenues, costs, and profit (lioss) by subtracting alternative 1 from alternative 2. b. Determine whether to sell rough-cut lumber (Aizernative 1) or process further into finished-cut lumber (Alternative 2 ). Process further and sell finished-cut lumber

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