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Sell or process further a. Prepare a differential analysis dated April 21 on whether...

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Accounting

Sell or process further
a. Prepare a differential analysis dated April 21 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)
April 21
\table[[April 21,,],[Line Item Description,\table[[Sell Rough-Cut],[(Alternative 1)]],\table[[Process Further],[into Finished-Cut],[(Alternative 2)]]],[Revenues, per 100 board ft.,,],[Costs, per 100 board ft.,,],[Profit (Loss), per 100 board ft.,,]]
h. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).eBook Show Me How
Question Content Area
Sell or process further
Northern Lumber Company incurs a cost of $388 per hundred board feet (hbf) in processing certain rough-cut lumber, which it sells for $544 per hbf. An alternative is to produce a finished-cut at a total processing cost of $525 per hbf, which can be sold for $758 per hbf.
Question Content Area
a. Prepare a differential analysis dated April 21 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
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