Question
Sell or Process Further Bunyon Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain rough-cut lumber, which it
Sell or Process Further Bunyon Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $544 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $529 per hbf, which can be sold for $768 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Process Further into Finished Cut Differential Effect Sell Rough-Cut (Alternative 1) on Income (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft.
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