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Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are

Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Sales Value Additional Sales Value after

Product at Split-off Variable Costs Further Processing

Green lumber 159,600 24,000 178,000

Rough lumber 124,000 28,200 173,600

Sawdust 102,000 19,600 130,000

What is the increase in profit if the appropriate products are processed further?

  • 29,800
  • 24,200
  • 255,800
  • 96,000

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