Sell or Process Further Calgary Lumber Company Incurs a cost of $386 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $544 per hbl. An alternative is to produce a finished-cut" at a total processing cost of $522 per hbt, which can be sold for $700 per hdf. Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished cut lumber (Aitomotive >> Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Process Further Differential Rough-Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board it. Costs, per 100 board ft. Profit (Loss), per 100 board ft b. Determine whether to sell rough-cut lumber (Alternative to process further into finished-cut lumber (Alternative 2) Sell rough-cut lumber. Process further and sell finished-cut lumber. A company is considering replacing an old piece of machinery, which cost $598,000 and has $347,200 of accumulated depreciation to date, with a new machine that has a purchase price of $484,300. The old machine could be sold for $63,400. The annual variable production costs associated with the old machine an estimated to be $158,300 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,400 per year for eight years. a.1 Prepare a differential analys dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "0". It required, use a minus sign to indicate a loss Differential Analysis Continue with Old Machine (At. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs Purchase price Vanable productions costs ( years Old B Profit (LO) 3.2 Determine whether to continue with (Alternativet) or replace (Alternative 2) the old machine. Continue with the old machine Replace the old machine U. The sunk cost is