Kerrigan Lumber Yard receives 12,000 large trees each year that they process into rough logs.Currently, Kerrigan sells the rough logs for $75 each.Kerrigan is considering processing the logs further into refined lumber.Each log can be processed into 200 feet of refined lumber at an additional cost of $0.40 per foot.The refined lumber can be sold for $0.95 per foot.
Should Kerrigan process the rough logs into refined lumber?
A) Yes, income will increase by $35 per log.
B) Yes, income will increase by $110 per log.
C) Yes, income will increase by $75 per log.
D) No, income will decrease by $35 per log.
E) No, income will decrease by $110 per log.

Question

Kerrigan Lumber Yard receives 12,000 large trees each year that they process into rough logs.Currently, Kerrigan sells the rough logs for $75 each.Kerrigan is considering processing the logs further into refined lumber.Each log can be processed into 200 feet of refined lumber at an additional cost of $0.40 per foot.The refined lumber can be sold for $0.95 per foot.  
Should Kerrigan process the rough logs into refined lumber?
A) Yes, income will increase by $35 per log.
B) Yes, income will increase by $110 per log.
C) Yes, income will increase by $75 per log.
D) No, income will decrease by $35 per log.
E) No, income will decrease by $110 per log.

Quizplus · Accepted Answer

11ea8a4c_48b1_ca22_a0e6_4f9bf844561b_TB5550_00 Increase of $35.00 per log ($110.00 - $75.00)
*$0.95 × 200
**$0.40 × 200

Kerrigan Lumber Yard Receives 12,000 Large Trees Each Year That