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a Sell or Process Further Calgary Lumber Company Incurs a cost...

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Accounting

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a Sell or Process Further Calgary Lumber Company Incurs a cost of $388 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $562 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $525 per hbf, which can be sold for $776 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough cut lumber (Alternative 1) or process further into finished cut lumber (Alternative 2). Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished-Cut (Alt. 2) March 15 Sell Process Further Differential Rough Cut into Finished-Cut Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per 100 board it Costs, per 100 board it Profit (Loss), per 100 board b. Determine whether to sell rougfi-cut lumber (Alternative 1) or process further into finished-cut umber (Alternative 2), Sell rough-cut lumber Process further and sell finished-cut lumber

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