Sunland Bunyon Lumber Co. produces several products that can be sold at the split-off point...
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Sunland Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
Product
Sales Value at Split-off
Additional Variable Costs
Sales Value after Further Processing
Green lumber
$152600
$23200
$175800
Rough lumber
117000
26700
163800
Sawdust
97000
18500
123600
Which products should be processed further?
All three products.
Rough lumber and sawdust.
Green lumber and rough lumber.
Green lumber and sawdust.
**Hello, I am not sure on how the formula works on this. Thank you!
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