Pacific Northwest Lumber has a raw lumber division and a finished lumber division. The variable costs are: Raw lumber division: $110 per 100 board-feet of raw lumber Finished lumber division: $135 per 100 board-feet of finished lumber Assume that there is no board-feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $210 per 100 board-feet. Finished lumber can be sold at $385 per 100 board-feet. Requirements 1. Should Pacific Northwest Lumber process raw lumber into its finished form? Show your calculations. 2. Assume that internal transfers are made at 110% of variable cost. Will each division maximize its division operating-income contribution by adopting the action that is in the best interest of Pacific Northwest Lumber as a whole? Explain. 3. Assume that internal transfers are made at market prices. Will each division maximize its division operating-income contribution by adopting the action that is in the best interest of Pacific Northwest Lumber as a whole? Explain.