Sell or Process Further Northern Lumber Company incurs a cost of $388 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $568 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $520 per hbf, which can be sold for $744 per hbf. a. Prepare a differential analysis dated April 21 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) April 21 Line Item Description Sell Rough-Cut, (Alternative 1) Process Further into Finished-Cut (Alternative 2) Differential Effects (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. Profit (Loss), per 100 board ft. Feedback Check My Work For both products, subtract the costs from the revenues, per 100 board ft. Determine the differential effect on income of the revenues, costs, and profit (loss) by subtracting alternative 1 from alternative 2. b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Process further and sell finished-cut lumber.