Sell or Process Further Calgary Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain \"rough- cut\" lumber, which it sells for $546 per hbf. An alternative is to produce a \"finished-cut\" at a total processing cost of $521 per hbf. which can be sold for $754 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell roughcut 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 Process Further Differential Rough-Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenuesj per 100 board ft. '5 $ $ 1 Costs, per 100 board ft. . l Profit (Loss), per 100 board ft. '5 $ $ b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). v Lease or Sell Kincaid Company owns equipment with a cost of $363,200 and accumulated depreciation of $52,900 that can be sold for $276,300, less a 5% sales commission. Alternatively, Kincaid Company can lease the equipment for three years for a total of $287,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Kincaid Company on the equipment would total $15,200 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Kincaid Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 Lease Sell Differential Equipment Equipment Effects (Alternative 1.) (Alternative 2) (Alternative 2) Revenues $:] $[:_ $:] Costs U L L] Prot (Loss) $:] $ I $C] b. Should Kincaid Company lease (Alternative 1) or sell (Alternative 2) the equipment? V