Structuring the Sell-or-process-Further Decision Jack's Lumber Yard recelves 8,000 large trees each period that it subsequently processes into rough lags by stripging off the tree bark and leaves. Jack's then must decide whether to sell its tough logs ffor use in log cabin construcbion) at split-off or to process them further into refined fumber (for use in regular construction framing). Jack's normaily sells logs for a per-unit price of $485. Altemately, esch log can be processed further into Boo board feet of lumber at an additional cost of so.05 per board foot. Aso, lumber can be sold for 30.75 per board foot. (Note: One tree is equal to one rough log.) Required: 1. What is the cotal contribution to income from selling the logs for log cabin construction? 2. What is the total contribution to income from processing the logs into lumber? x 3. Should Jack's continue to sen the logs or process them further into lumber? rewateck Tchech My won 1. Tree = Log. Multiply number of logs by sales priceflog. 2. Calculate revenve to process furthec, Multiply soles pricerboard by number of boards (togs x feet of lumber). Calculate additional processing cost, cost/board x number of boards, Subtract processing cost from revenue. 3. Compare 41 and 22 for the hloher income