Use the Following Information for Questions
Paul Bunyon Lumber

question 123

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: $\begin{array}{lrrr}& \text { Sales Value } & \text { Additional } & \text { Sales Value after } \\\text { Product } & \text { at Split-off } & \text { Variable Costs } & \text { FurtherProcessing }\\\text { Green lumber } & \$ 159,600 & \$ 24,000 & \$ 178,000 \\\text { Rough lumber } & 124,000 & 28,200 & 173,600 \\\text { Sawdust } & 102,000 & 19,600 & 130,000\end{array}$
-Which products should be processed further?

• A) Green lumber and rough lumber
• B) Green lumber and sawdust
• C) Rough lumber and sawdust
• D) All three products

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Definitions:

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The actual cost to a dealer for the products they sell, often excluding additional expenses like marketing or transport.

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The rate at which a merchandise's price is elevated to set its market selling price.

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A device used in homes to heat water for domestic purposes such as bathing and cooking.