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Sell or Process Further Calgary Lumber Company incurs a cost of $384 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells

Sell or Process Further Calgary Lumber Company incurs a cost of $384 per hundred board feet (hbf) in processing certain "rough-cut lumber, which it sells for $550 per hbf. An alternative is to produce a "finished-out" at a total processing cost of $522 per hof, which can be sold for $752 per ho Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2) Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Rough-Cut (Alternative 1) Revenues, per 100 board ft. Costs, per 100 board f Process Further Differential into Finished-Cut Effects (Alternative 2) (Alternative 2) 230 X Profit (Loss), per 100 board ft. Chas My W For both products, subtract the costs from the revenues, per 100 board ft. Determine the differential effect on income of the revenues, costs, and profe (loss) by subtracting aternative 1 from alternative 2. b. Determine whether to set rough-cut fumber (Alternative 1) or process further into fished-out lumber (Alternative 2) Process further and sell finished-cut humber For both products, subtract the costs from the revenues, per 100 board n. Determine the differential effect on income of the revenues, costs, and profit (loss) by subtracting alternative 1 from alternative 2

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