Caloulator Sell or Process Further Bunyon Lumber Company incurs a cost of $398 p

Question

Caloulator Sell or Process Further Bunyon Lumber Company incurs a cost of $398 per hundred board feet in board feet. An alternative is to produce a "finished cut hundred board feet i "rough-cut lumber, which it sells for $556 per hundred at a total processing cost of $523 per hundred board feet, which can be sold for $746 per a. Prepare a differential analysis dated March 4, on whether to sel (Alternative 2) rough-cut lumber (Alternative 1) or process further into finished-out lumber Differential Anelysis Sell Rough Cut (Alt. 1)or Process Further into Finished Cut (AR 2) Sell Rough Cut (Ahernative 3) Process Further into Finished Cut (Atermative 2) Diferential Effect on Income (Ahemative 2) Revenues, per 100 board ft Costs, per 100 board ft Income (Loss), per 100 board Determine whether to sel rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Altermative 2) Previcus Next All work saved

Explanation / Answer

sell process Differential rough further Effect (alt 1) Revenues per 100 board ft. 556 746 190 cost,per 100 board ft. 398 523 -125 income(loss)per 100 board ft. 158 223 65 process further Alternative 2

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