Kerrigan Lumber Yard receives 12,000 large trees each year that they process into rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is considering processing the logs further into refined lumber. Each log can be processed into 200 feet of refined lumber at an additional cost of $0.40 per foot. The refined lumber can be sold for $0.95 per foot. Should Kerrigan process the rough logs into refined lumber? 

a. No, income will decrease by $35 per log.

 b. Yes, income will increase by $110 per log. 

c. No, income will decrease by $110 per log. 

d. Yes, income will increase by $35 per log. 

e. Yes, income will increase by $75 per log.

Answer rating: 100% (QA)

Income if Sold as is 75 Inc... View the full answer