Paul Bunyon Lumber Co - What Is the Increase in Profit If the Appropriate

question 57

Multiple Choice

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: $\begin{array}{lrrr}& \text { Sales Value } & \text { Additional } & \text { Sales Value after } \\\text { Product } & \text { at Split-off } & \text { Variable Costs } & \text { Further Processing } \\\hline\text { Green lumber } & \$ 159,600 & \$ 24,000 & \$ 178,000 \\\text { Rough lumber } & 124,000 & 28,200 & 173,600 \\\text { Sawdust } & 102,000 & 19,600 & 130,000\end{array}$
- What is the increase in profit if the appropriate products are processed further?

• A)$24,200
• B)$29,800
• C)$96,000
• D)$255,800

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