Sell or Process Further Jackson Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $540 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $742 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Differential Effect on Income Process Further into Finished Cut (Alternative 2) (Alternative 2) Sell Rough-Cut (Alternative 1) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Sell rough-cut lumber Process further and sell finished-cut lumber

Question
Sell or Process Further
Jackson Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $540 per hbf. An alternative is to
produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $742 per hbf.
Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes
in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)
August 9
Differential
Effect
on Income
Process
Further into
Finished Cut
(Alternative 2) (Alternative 2)
Sell
Rough-Cut
(Alternative 1)
Revenues, per 100 board ft.
Costs, per 100 board ft.
Income (Loss), per 100 board ft.
Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
Sell rough-cut lumber
Process further and sell finished-cut lumber
Expand
Transcribed Image Text

Sell or Process Further Jackson Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $540 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $742 per hbf. Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Differential Effect on Income Process Further into Finished Cut (Alternative 2) (Alternative 2) Sell Rough-Cut (Alternative 1) Revenues, per 100 board ft. Costs, per 100 board ft. Income (Loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). Sell rough-cut lumber Process further and sell finished-cut lumber

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