Raw lumber division and a finished lumber

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Reference no: EM13750049

Calgary Lumber has a raw lumber division and a finished lumber division. The variable costs are:

-Raw lumber division: $130 per 100 board-feet of raw lumber

-Finished lumber division: $155 per 100 board-feet of finished lumber

Assume that there is no board-feet loss in processing raw lumber into finished lumber. Raw Lumber can be sold a $255 per 100 board-feet. Finished lumber can be sold at $330 per 100 board-feet.

1. Should Calgary Lumber process raw lumber into it's finished form? Show your calculations

Reference no: EM13750049

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