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Oregon Lumber has a raw lumbar division and a finished lumbor division. The variable costs are as follows: Raw lumber division: $70 per 100 board
Oregon Lumber has a raw lumbar division and a finished lumbor division. The variable costs are as follows: Raw lumber division: $70 per 100 board feet of raw lumber Finished lumber division: $95 per 100 board feet of finished lumber Assume that there is no board-feet loss in processing raw kumber into finished lumbet. Raw lumber can be sold at $170 per 100 board-feet. Finished lumber can be sold at $195 per 100 board-feet. Read the requirements Requirement 1. Should Oregon Lumber process raw lumber into its finished form? Show your calculations Begin by selecting the formula you will use to make your decision. Then enter the amounts in the formula. (Use parentheses or a minus sign when entering losses.) Incremental costs Goir (loss) on further processing Incremental revenues
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