CengageNowv2 1 Online teaching and learning resource from Ce

CengageNowv2 1 Online teaching and learning resource from Cengage Learning Sell or Process Purther Jackson Lumber Company Incurs a cout of $376 per hundred board feet in hundred board feet, which can be sold for $756per hundred beard feet which sets for $504 per hundred board feet. An anernativt to produce a ? ited cut. ae a total a. Prepare a differential analysis dated March 4 to sell rough-out lumber (Albernative 1) or process further into finished cut umber (Alternative 2) Differential Analysis Revenues, per 100 board t. Cots per 100 board t Determine whether to sell rough-cut lumber (Atermative 1) or process further inte finished-cut lumber (Altermative 2) Previous

Solution

Differential Analysis Sell Rough Cut (Alt.1) or Process Further into Fineshed Cut (Alt.2) March 4 Sell Rough Cut (Alternative 1) Process Futher Into Finished Cut (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per 100 board ft 564 756 192 Costs, per 100 board ft. 376 522 146 Income (Loss), per 100 board ft. 188 234 46 Process further into finished cut lumber (Alternative 2).