Sell or process further

Sell or process further

Jackson Lumber Company incurs a cost of $390 per hundred board feet in processing certain “rough-cut” lumber, which it sells for $555 per hundred board feet.
An alternative is to produce a “finished cut” at a total processing cost of $525 per hundred board feet, which can be sold for $760 per hundred board feet.
Prepare a differential analysis dated March 4, 2012, on whether to sell rough-cut lumber (alternative 1) or process further into finished cut lumber
(alternative 2).

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