The Nick Lumber Company is in the process of deciding whether to sell or process further rough-sawn lumber.The joint cost of producing the rough-sawn lumber is $10,500.The following data are available:

a.What is the incremental effect,increase or (decrease),on operating income of processing each type of lumber further?
b.Which type of lumber should be processed further?

Question

The Nick Lumber Company is in the process of deciding whether to sell or process further rough-sawn lumber.The joint cost of producing the rough-sawn lumber is $10,500.The following data are available:
 
a.What is the incremental effect,increase or (decrease),on operating income of processing each type of lumber further?
b.Which type of lumber should be processed further?

Quizplus · Accepted Answer

The Answer of The Nick Lumber Company is in the process of deciding whether to sell or process further rough-sawn lumber.The joint cost of producing the rough-sawn lumber is $10,500.The following data are available:
 
a.What is the incremental effect,increase or (decrease),on operating income of processing each type of lumber further?
b.Which type of lumber should be processed further?

The Nick Lumber Company Is in the Process of Deciding