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Sell or Process Further St. Paul Lumber Company incurs a cost of $481 per hundred board feet in processing certain rough-cut lumber, which it sells
Sell or Process Further St. Paul Lumber Company incurs a cost of $481 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $625 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $558 per hundred board feet, which can be sold for $834 per hundred board feet. a. What is the amount of the differential revenue? per hundred board feet b. What is the amount of the differential cost? per hundred board feet c. What is the amount of the differential income for processing rough-cut lumber into finished cut? per hundred board feet
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