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Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbl) in processing certain rough-cut lumber, which it sells for $532 per
Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbl) 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. 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) Revenues, per 100 board it. Costs, per 100 board ft. Profit (loss), per 100 board it. August 9 Sell Rough Cut (Alternative 1) Process Further into Finished Cut (Alternative 2) 000 Differential Effects (Alternative 2)
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