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Sunland Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are
Sunland Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
Product | Sales Value at Split-off | Additional Variable Costs | Sales Value after Further Processing | |
Green lumber | $152600 | $23200 | $175800 | |
Rough lumber | 117000 | 26700 | 163800 | |
Sawdust | 97000 | 18500 | 123600 |
Which products should be processed further?
All three products.
Rough lumber and sawdust.
Green lumber and rough lumber.
Green lumber and sawdust.
**Hello, I am not sure on how the formula works on this. Thank you!
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