=+E12-10 Sell or process farther Obj 1

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a. $225 Oregon Lumber Company incurs a cost of $465 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 $545 per hundred board feet, which can be sold for $850 per hundred board feet. What is the amount of

(a) the differential rev¬

enue,

(b) differential cost, and

(c) differential income for processing rough-cut lumber into finished cut?

El2-11 Sell or process further Obj 1 SPREADSHEET