Use the Following Information for Questions
Paul Bunyon Lumber

question 105

Multiple Choice

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.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of others in legal or business transactions, representing their interests.

Mistake Of Judgment

an error made in the decision-making process, often due to a lack of information or misinterpretation of facts.

Corporate Director

A member of the board of directors of a corporation, responsible for overseeing and guiding the corporation's policies and direction.

Corporate Books

Official records that a corporation is required to maintain, which include registration details, bylaws, minutes of meetings, and financial accounts.