Sell or process further

a$.$ Prepare a differential analysis dated April $21$ 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$.2)$

April $21$

$\backslash$table$[[$April $21,,],[$Line Item Description,$\backslash$table$[[$Sell Rough$-$Cut$],[($Alternative $1)]],\backslash$table$[[$Process Further$],[$into Finished$-$Cut$],[($Alternative $2)]]],[$Revenues$,$ per $100$ board ft$.,,],[$Costs$,$ per $100$ board ft$.,,],[$Profit $($Loss$),$ per $100$ board ft$.,,]]$

h$.$ Determine whether to sell rough$-$cut lumber $($Alternative $1)$ or process further into finished$-$cut lumber $($Alternative $2).$eBook Show Me How

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Sell or process further

Northern Lumber Company incurs a cost of $$388$ per hundred board feet $($hbf$)$ in processing certain $$rough$-$cut$$ lumber, which it sells for $$544$ per hbf$.$ An alternative is to produce a $$finished$-$cut$$ at a total processing cost of $$525$ per hbf$,$ which can be sold for $$758$ per hbf$.$

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a$.$ Prepare a differential analysis dated April $21$ on whether to sell rough$-$cut lumber $($Alternative $1)$ or process further into finished$-$cut lumber $($Alternative $2).$