Question: Oakridge Lumber Company incurs a cost of 412 per
Oakridge Lumber Company incurs a cost of $ 412 per hundred board feet in processing certain “rough-cut” lumber, which it sells for $ 586 per hundred board feet. An alternative is to produce a “finished cut” at a total processing cost of $ 536 per hundred board feet, which can be sold for $ 755 per hundred board feet. Prepare a differential analysis dated June 14, 2014, on whether to sell rough- cut lumber (Alternative 1) or process further into finished- cut lumber (Alternative 2).
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