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Sell or Process Further Bunyon Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells
Sell or Process Further Bunyon Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $558 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $521 per hbf, which can be sold for $740 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 Sell ProcessDifferential Rough CutFurther into (Alternative 1) Finished Cut Effect 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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