Bunyon Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $558 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $764 per hbf. Question Content Area Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)August 9 Sell Rough-Cut (Alternative 1) Process Further into Finished Cut (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per 100 board ft. $fill in the blank fa4885fccf9100c_1 $fill in the blank fa4885fccf9100c_2 $fill in the blank fa4885fccf9100c_3 Costs, per 100 board ft. fill in the blank fa4885fccf9100c_4 fill in the blank fa4885fccf9100c_5 fill in the blank fa4885fccf9100c_6 Income (Loss), per 100 board ft. $fill in the blank fa4885fccf9100c_7 $fill in the blank fa4885fccf9100c_8 $fill in the blank fa4885fccf9100c_9
Bunyon Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $558 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $764 per hbf. Question Content Area Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)August 9 Sell Rough-Cut (Alternative 1) Process Further into Finished Cut (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per 100 board ft. $fill in the blank fa4885fccf9100c_1 $fill in the blank fa4885fccf9100c_2 $fill in the blank fa4885fccf9100c_3 Costs, per 100 board ft. fill in the blank fa4885fccf9100c_4 fill in the blank fa4885fccf9100c_5 fill in the blank fa4885fccf9100c_6 Income (Loss), per 100 board ft. $fill in the blank fa4885fccf9100c_7 $fill in the blank fa4885fccf9100c_8 $fill in the blank fa4885fccf9100c_9
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bunyon Lumber Company incurs a cost of $376 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $558 per hbf. An alternative is to produce a "finished cut" at a total
Question Content Area
Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential AnalysisSell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)August 9Sell Rough-Cut (Alternative 1) |
Process Further into Finished Cut (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Revenues, per 100 board ft. | $fill in the blank fa4885fccf9100c_1 | $fill in the blank fa4885fccf9100c_2 | $fill in the blank fa4885fccf9100c_3 |
Costs, per 100 board ft. | fill in the blank fa4885fccf9100c_4 | fill in the blank fa4885fccf9100c_5 | fill in the blank fa4885fccf9100c_6 |
Income (Loss), per 100 board ft. | $fill in the blank fa4885fccf9100c_7 | $fill in the blank fa4885fccf9100c_8 | $fill in the blank fa4885fccf9100c_9 |
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