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Sell or Process Further Bunyon Lumber Company incurs a cost of $382 per hundred board feet (hbo) in processing certain rough-cut lumber, which it sells
Sell or Process Further Bunyon Lumber Company incurs a cost of $382 per hundred board feet (hbo) in processing certain rough-cut" lumber, which it sells for $570 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $527 per hbf, which can be sold for $742 per hbf. Prepare a differential analyuls 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 Sell Process Differential Further into Rough-Cut Effect Finished Cut (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. on Income Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2)
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