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Sell or Process Further Bunyon Lumber Company incurs a cost of $392 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 $392 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $564 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $520 per hbf, which can be sold for $744 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 Process Differential Further into Effect Rough-Cut Finished Cuton Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2)
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