Sell or Process Further

Timberland Lumber Company incurs a cost of $$398$ per hundred board feet $($hbf$)$ in processing certain $$rough$-$cut$$ lumber, which it sells for $$532$ per hbf$.$ An alternative is to produce a $$finished cut$$ at a total processing cost of $$515$ per hbf$,$ which can be sold for $$656$ per hbf$.$

Question Content Area

Prepare a differential analysis dated August $9$ on whether to Sell Rough Cut $($Alternative $1)$ or Process Further into Finished Cut $($Alternative $2).$ For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis

Sell Rough Cut $($Alt$.1)$ or Process Further into Finished Cut $($Alt$.2)$

August $9$

Sell

Rough Cut

$($Alternative $1)$ Process

Further into

Finished Cut

$($Alternative $2)$

Differential

Effects

$($Alternative $2)$

Revenues, per $100$ board ft$.$ $fill in the blank dc$6$d$6$c$06$b$035$f$99\_1$

$fill in the blank dc$6$d$6$c$06$b$035$f$99\_2$

$fill in the blank dc$6$d$6$c$06$b$035$f$99\_3$

Costs, per $100$ board ft$.$ fill in the blank dc$6$d$6$c$06$b$035$f$99\_4$

fill in the blank dc$6$d$6$c$06$b$035$f$99\_5$

fill in the blank dc$6$d$6$c$06$b$035$f$99\_6$

Profit $($loss$),$ per $100$ board ft$.$ $fill in the blank dc$6$d$6$c$06$b$035$f$99\_7$

$fill in the blank dc$6$d$6$c$06$b$035$f$99\_8$

$fill in the blank dc$6$d$6$c$06$b$035$f$99\_9$

Question Content Area

Determine whether to sell rough$-$cut lumber $($Alternative $1)$ or process further into finished$-$cut lumber $($Alternative $2).$