(Answered) Question - bunyon lumber company incurs a cost of 400 per

Accounting

Question - Bunyon Lumber Company incurs a cost of $400 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $558 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $527 per hundred board feet, which can be sold for $776 per hundred board feet.

Prepare a differential analysis dated March 4, 2014, on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).

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