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Northwest Building Products ( NBP ) manufactures two lumber products from a joint milling process: residential building lumber ( RBL ) and commercial building lumber

Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $495,000 and results in 88,000 units of RBL and 132,000 units of CBL. Each RBL sells for $10 per unit and each CBL sells for $12 per unit. Based on information in requirement 3, should NBP choose to process RBL beyond split-off?
No because additional processing results in an unavoidable loss of {{[a(7)]:#,###}} units of CBL.
Yes because it can charge a higher price for the residential lumber after the additional processing.radio button unchecked1 of 4
Yes because total revenue for the residential lumber exceeds the incremental cost of the additional processing.radio button unchecked2 of 4
No because the increase in sales revenue is less than the extra processing costs.radio button unchecked3 of 4
No because additional processing results in an unavoidable loss of 11,000 units of CBL.radio button checked4 of 4

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