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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 28,000 173,600 Sawdust 102,000 19,600 130,000 The additional profit that would result from processing rough lumber further is A) $21,400 B) $49,600 C) $145,400 D) $95,800
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