1.
Sell or Process Further
Bunyon Lumber Company incurs a cost of $386 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $540 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $522 per hbf, which can be sold for $742 per hbf.
Prepare a differential analysis dated August 9 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis  
Sell RoughCut (Alt. 1) or Process Further into Finished Cut (Alt. 2)  
August 9  
Sell RoughCut (Alternative 1) 
Process Further into Finished Cut (Alternative 2) 
Differential Effect on Income (Alternative 2) 

Revenues, per 100 board ft.  $  $  $ 
Costs, per 100 board ft.  
Income (Loss), per 100 board ft.  $  $  $ 
Determine whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2).
2.
Decision on Accepting Additional Business
Down Home Jeans Co. has an annual plant capacity of 66,200 units, and current production is 44,200 units. Monthly fixed costs are $41,100, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Fields Company for 15,600 units of the product at $28 each. Fields Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Down Home Jeans Co.
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis  
Reject Order (Alt. 1) or Accept Order (Alt. 2)  
November 12  
Reject Order (Alternative 1) 
Accept Order (Alternative 2) 
Differential Effect on Income (Alternative 2) 

Revenues  $  $  $ 
Costs:  
Variable manufacturing costs  
Income (Loss)  $  $  $ 
b. Having unused capacity available is to this decision. The differential revenue is than the differential cost. Thus, accepting this additional business will result in a net .
c. What is the minimum price per unit that
would produce a positive contribution margin? Round your answer to
two decimal places.
$
3.
Decision on Accepting Additional Business
Brightstone Tire and Rubber Company has capacity to produce 128,000 tires. Brightstone presently produces and sells 98,000 tires for the North American market at a price of $95 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 15,000 tires for $79.75 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:
Direct materials  $36 
Direct labor  13 
Factory overhead (70% variable)  22 
Selling and administrative expenses (40% variable)  19 
Total  $90 
Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $75,000.
a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. If an amount is zero, enter zero "0". If required, round interim calculations to two decimal places.
Differential Analysis  
Reject Order (Alt. 1) or Accept Order (Alt. 2)  
January 21  
Reject Order (Alternative 1) 
Accept Order (Alternative 2) 
Differential Effect on Income (Alternative 2) 

Revenues  $  $  $ 
Costs:  
Direct materials  
Direct labor  
Variable factory overhead  
Variable selling and admin. expenses  
Shipping costs  
Certification costs  
Income (Loss)  $  $  $ 
Determine whether to reject (Alternative 1) or accept
(Alternative 2) the special order from Euro Motors.
b. What is the minimum price per unit that
would be financially acceptable to Brightstone? Round your answer
to two decimal places.
$per unit
Prepare a differential analysis dated August 9 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis  
Sell RoughCut (Alt. 1) or Process Further into Finished Cut (Alt. 2)  
August 9  
Sell RoughCut (Alternative 1) 
Process Further into Finished Cut (Alternative 2) 
Differential Effect on Income (Alternative 2) 

Revenues, per 100 board ft.  $540  $742  $202 
Costs, per 100 board ft.  386  522  136 
Income (Loss), per 100 board ft.  $154  $220  $66 
Determine whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2).
Company should sell finished cut lumber..
Pls post each que individually as per HOMEWORKLIB RULES
1. Sell or Process Further Bunyon Lumber Company incurs a cost of $386 per hundred board...
Sell or Process Further Calgary Lumber Company incurs a cost of $396 per hundred board feet (hbf) in processing certain “roughcut” lumber, which it sells for $550 per hbf. An alternative is to produce a “finishedcut” at a total processing cost of $520 per hbf, which can be sold for $756 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis Sell...
Sell or Process Further Calgary Lumber Company incurs a cost of $394 per hundred board feet (hbf) in processing certain “roughcut” lumber, which it sells for $554 per hbf. An alternative is to produce a “finishedcut” at a total processing cost of $521 per hbf, which can be sold for $762 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis Sell...
Sell or Process Further Calgary Lumber Company incurs a cost of $392 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $562 per hbf. An alternative is to produce a "finishedcut" at a total processing cost of $528 per hbf, which can be sold for $746 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis Sell...
Sell or Process Further Jackson Lumber Company incurs a cost of $384 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $548 per hbf. An alternative is to produce a "finished cut at a total processing cost of $527 per hbf, which can be sold for $740 per hbf. Prepare a differential analysis dated August 9 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). For those boxes...
Sell or Process Further Bunyon Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $566 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $523 per hbf, which can be sold for $752 per hbf. Prepare a differential analysis dated August 9 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). For those boxes...
Sell or Process Further Calgary Lumber Company incurs a cost of $382 per hundred board feet (hbf) in processing certain “roughcut” lumber, which it sells for $566 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $528 per hbf, which can be sold for $748 per hbf. a. Prepare a differential analysis dated March 15, on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis...
Sell or Process Further Calgary Lumber Company incurs a cost of $396 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $542 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $528 per hbf, which can be sold for $740 per hbf. a. Prepare a differential analysis dated March 15, on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis...
Sell or Process Further Jackson Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain "roughcut" lumber, which it sells for $550 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $529 per hbf, which can be sold for $766 per hbf. Prepare a differential analysis dated August 9 on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). For those boxes...
Calgary Lumber Company incurs a cost of $378 per hundred board feet (hbf) in processing certain “roughcut” lumber, which it sells for $552 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $523 per hbf, which can be sold for $750 per hbf. a. Prepare a differential analysis dated March 15, on whether to sell roughcut lumber (Alternative 1) or process further into finishedcut lumber (Alternative 2). Differential Analysis Sell RoughCut (Alt. 1)...
1. Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $600,200 and has $348,100 of accumulated depreciation to date, with a new machine that has a purchase price of $483,000. The old machine could be sold for $62,100. The annual variable production costs associated with the old machine are estimated to be $157,700 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,400 per year...