Business

Zeke

11 July, 12:54

Sell or Process Further Calgary Lumber Company incurs a cost of $315 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $440 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $465 per hbf, which can be sold for $600 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 Process FurtherDifferential (Alternative (Alternaie2) Alternative 2) Costs, per 100 board ft Income (Loss), per 100 board ft. b. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).