Use the following information for questions
Paul 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: $\begin{array}{lrrr}& \text { Sales Value } & \text { Additional } & \text { Sales Value after } \
\text { Product } & \text { at Split-off } & \text { Variable Costs } & \text { FurtherProcessing }\
\text { Green lumber } & \$ 159,600 & \$ 24,000 & \$ 178,000 \
\text { Rough lumber } & 124,000 & 28,200 & 173,600 \
\text { Sawdust } & 102,000 & 19,600 & 130,000
\end{array}$
-The additional profit that would result from processing rough lumber further is
A) $21,400.
B) $49,600.
C) $145,400.
D) $95,800.

Question

Use the following information for questions 
Paul 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: $\begin{array}{lrrr}& \text { Sales Value } & \text { Additional } & \text { Sales Value after } \
\text { Product } & \text { at Split-off } & \text { Variable Costs } & \text { FurtherProcessing }\
\text { Green lumber } & \$ 159,600 & \$ 24,000 & \$ 178,000 \
\text { Rough lumber } & 124,000 & 28,200 & 173,600 \
\text { Sawdust } & 102,000 & 19,600 & 130,000
\end{array}$
-The additional profit that would result from processing rough lumber further is
A) $21,400.
B) $49,600.
C) $145,400.
D) $95,800.

Quizplus · Accepted Answer

The additional profit from processing rough lumber further is calculated by subtracting the additional variable costs from the increase in sales value after further processing: ($173,600 - $124,000) - $28,200 = $21,400.

Use the Following Information for Questions Paul Bunyon Lumber

Use the Following Information for Questions
Paul Bunyon Lumber