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Question - Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8.
Required - Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis.
The annual depreciation on the new machine would be $65,000. What is the simple rate of return on the investment to the nearest tenth of a percent
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