Sell or process further

Northern Lumber Company incurs a cost of $$382$ per hundred board feet $($hbf$)$ in processing certain "rough$-$cut" lumber, which it sells for $$562$ per hbf$.$ An alternative is to produce a "finishedcut" at a total processing cost of $$525$ per hbf$,$ which can be sold for $$754$ 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 $21$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Sell Rough$-$Cut$],[($Alternative $1)]]$

$\backslash$table$[[$Process Further$],[$into Finished$-$Cut$],[($Alternative $2)]]],[$Revenues$,$ per $100$ board ft$.,],[$Costs$,$ per $100$ board ft$.,],[$Profit $($Loss$),$ per $100$ board ft$.,]]$

Feedback

$"$ Check My Work $1$ 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.

Feedback

Theck Wy Work $1$ from alternative $2.$