Prepare differential analysis dated

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Reference no: EM131213862

Sell or Process Further Jackson Lumber Company incurs a cost of $394 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 $522 per hundred board feet, which can be sold for $756 per hundred board feet.

a. 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).

Differential Analysis

Sell Rough Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)

March 4, 2014

Sell Rough Cut (Altern.1) Process Further into Finished Cut (Altern.2) Differential Effect on Income (Altern.2)

Revenues, per 100 board ft. $ $ $

Costs, per 100 board ft. $ $ $

Income (Loss), per 100 board ft. $ $ $

Reference no: EM131213862

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