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Sell or Process Further Calgary Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain roughcut lumber, which it sells
Sell or Process Further Calgary Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain \"roughcut" lumber, which it sells for $560 per hbf. An alternative is to produce a \"finishedcut" at a total processing cost of $524 per hbf, which can be sold for $766 per hbf. 3. Prepare a differential analysis dated March 15 on whether to sell roughcut lumber (Alternative 1) or process further into nishedcut lumber (Alternative 2). 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 ft. 15:] $:] $:] Costs, per 100 board ft. C] C] C] > Profit (Loss), per 100 board ft. $:] 90:] $:] b. Determine whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2)
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