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 $570 per hbf. An alternative is to produce a finished-cut at a total processing cost of $522 per hbf, which can be sold for $774 per hbf.

a. 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).

a. 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) Marrh 15 b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2 )