ques 8 ch 11 hw

Sell or Process Further Calgary Lumber Company incurs a cost of $384 per hundred board feet (hbr) in processing certain "rough-cut" lumber, which it selis for $540 per hbf. An alternative is to produce o "finished-cut" ot a total processing cost of $522 per hbf, which can be sold for $766 per hbr. a. Prepare a differintial anolysis dated March 15 on whether to sell rough-cut fumber (Alternative 1) or process further into finished-cut lumbes (ARemative 2). treathish b. Determine wbether to sell rough-cut iumber (Alternatwe 1) or process further into finished-cut iamber (Alternotive 2)