Question

Sell or process further Instructions Amount Descriptions Differential Analysis Final Question Instructions Portland Lumber Company incurs a cost of $450 per hundred board feet (h) in processing certain rough cut lumber, which it sells for $606 per hot. An alternative is to produce a "inished out at a total processing cost of $543 per hot, which can be sold for $737 port, Required: 1. Prepare a differential analysis dated June 14 on whether to sell rough-out lumber (Ahernative 1) or process further into find out mor (Alterative 2). Refer to the Amount Description is provided for the exact wording of the answer choice for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign there is no amount or an amount is zeroentro Acolo (3) will automatically appear it required 2. Determine whether the company should sell roughout lumber (Aternative 1) or process further into finished-cut lumber (Aarrative 23.

Answer 1

	Sell Rough Cut	Process Further into Finished Cut	Differential Effect on Income
	(Alternative 1)	(Alternative 2)	(Alternative 2)
Revenues, per 100 board ft	606.00	737.00	131.00
Costs, per 100 board ft.	-450.00	-543.00	-93.00
Income (Loss), per 100 board ft	156.00	194.00	38.00
Company should process further and sell finished-cut lumber.