Figure 6-6
Suppose That a Sawmill Processes Logs into Four

question 22

Multiple Choice

Figure 6-6
Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at a joint cost of £300,000: $$\begin{array} { l c c } \text { Grade } & \text { Board Feet } & \text { Final Sales Value } \\\text { First and second } & 75,000 & £ 56,250 \\\text { No. } 1 \text { common } & 200,000 & 180,000 \\\text { No. } 2 \text { common } & 100,000 & 105,000 \\\text { No. } 3 \text { common } & 125,000 & 127,500\end{array}$$
-Refer to Figure 6-6. What is the gross profit of No. 3 common if the constant gross margin percentage method is used?

• A)£45,900
• B)£168,750
• C)£81,600
• D)£135,000

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Definitions:

Barriers

Obstacles or impediments that hinder progress or the achievement of objectives.

Effective Listening

The process of actively understanding, interpreting, and responding to the messages communicated by others.

Communication

The process of exchanging information, ideas, thoughts, feelings, and messages through verbal or nonverbal means.

Darting Eyes

Rapid eye movements that can indicate nervousness, discomfort, or the search for visual cues in communication.