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Northern Lumber Company incurs a cost of $386 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $568 per hbf.

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Northern Lumber Company incurs a cost of $386 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $568 per hbf. An aiternative is to produce a "finished-cut" at a total processing cost of $529 per hot, which can be sold for $764 per hbr. a. Prepare a differential analyis dated Apel 21 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2 ). Differential Analysis Sell Rough-Cut (Alt, 1) or Process Further into Finished-Cut (Alt. 2) Anril >1 b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2)

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