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Use the following information to answer problems 8 (Lumber) and 9 (Scrap) NW Sawmill buys...

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Accounting

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Use the following information to answer problems 8 (Lumber) and 9 (Scrap) NW Sawmill buys logs and then runs them through a saw that produces unfinished lumber and scrap (i.e, sawdust, chips, and bark). The cost of the log and the initial processing costs $200. The unfinished lumber can be sold "as is" or processed further into treated lumber. The scrap can also be sold "as is" to gardening supply wholesalers or processed further. Data concerning these joint products appear below: Per Log Sales Value at Split-off Sales Value After further processing Further processing costs Lumber Scrap $140ss $270 $50 $20 $16 What is the impact on operating income if the company decides to process each product. 8. Lumber C, Loss of $80 D. Loss of $50 A. Profit of $80 B, Profit of $130 D. Profit of $1 9. Scrap A. B. Proft of $25 D. Loss of $1 Loss of $16 refers to the benefit given up by choosing an alternative course of action. LO. True (A) or False (B): Opportunity Cost

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