Sell or Process Further

Calgary Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $560 per hbf. An alternative is to produce a finished cut at a total processing cost of $527 per hbf, which can be sold for $760 per hbf.

Sell or Process Further Calgary Lumber Company incurs a cost of $370 per hundred board feet (hbf) in processing certain "rough-cut lumber, which it sells for $560 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $527 per hbf, which can be solo for $760 per hbf a. Prepare a differential analysis dated March 15, on whether to sell rough-cut lumber (Altemative 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 Process Further Differential Sell-Rough-Out (Aternative 1) into Finished-Cut Effect on Income Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Income (Loss), per unit b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2)