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Northern Lumber Company incurs a cost of $400 per hundred board feet (hbr) in processing certain rough-cut lumber, which it sells for $542 per hbe.

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Northern Lumber Company incurs a cost of $400 per hundred board feet (hbr) in processing certain "rough-cut" lumber, which it sells for $542 per hbe. An alkemative is t produce a "finished-cut" at a total processing cost of $521 per hbf, which can be sold for $748 per hbt. a. Prepare a differential analysis dated April 21 on whether to sell rough-cut lumber (Aiternative 1) or process further into finished-cut lumber (Aiternative 2). Tcreck My Work For both products, subtract the costs from the revenues, per 100 board ft. Determine the differential effect on income of the revenues, costs, and profit (loss) by subtracting alternative 1 from alternative 2 . b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Auternative 2). Process further and sell finished-cut lumber

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