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Portland Lumber Company incurs a cost of $447 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $600 per hbf.
Portland Lumber Company incurs a cost of $447 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $600 per hbf. An alternative is to produce a finished cut at a total processing cost of $557 per hbf, which can be sold for $732 per hbf.
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1. | Prepare a differential analysis dated June 14 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter 0. A colon (:) will automatically appear if required. |
2. | Determine whether the company should sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). |
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