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

question 7

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. No. 2 common can be cut into 2 * 4s. The final sales value will increase to £150,000. The cost of cutting No. 2 common is £15,000. Should the No. 2s be cut into 2 *4s?

• A)Sell now.
• B)Cut into 2 *4s; profits will increase £30,000.
• C)Cut into 2 *4s; profits will increase £45,000.
• D)Cut into 2 * 4s; profits will increase £150,000.

---

Definitions:

Dorsal Visual Stream

The dorsal visual stream is a pathway in the brain that processes visual spatial information, crucial for understanding where objects are in space.

Parietal Lobe

One of the four major lobes of the cerebral cortex in the brain, playing key roles in processing sensory information from various parts of the body, as well as in navigation and spatial orientation.

Temporal Lobe

The region of the cerebral cortex located beneath the lateral fissure on both cerebral hemispheres of the mammalian brain, associated with processing auditory information and memory.

Temporal Association Cortex

A region of the brain involved in processing auditory information and plays a role in the formation of long-term memory.