Use the Following Information for Questions
Paul Bunyon Lumber

question 116

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