Figure 13-8

Figure 13-8. Kerrigan Lumber Yard receives 12,000 large trees each year that they process into rough logs. Currently, Kerrigan sells the rough logs for $75 each. Kerrigan is considering processing the logs further into refined lumber. Each log can be processed into 200 feet of refined lumber at an additional cost of $0.40 per foot. The refined lumber can be sold for $0.95 per foot.
-Refer to Figure 13-8. Should Kerrigan process the rough logs into refined lumber?

A) Yes, income will increase by $35 per log.
B) Yes, income will increase by $110 per log.
C) Yes, income will increase by $75 per log.
D) No, income will decrease by $35 per log.
E) No, income will decrease by $110 per log.

Correct Answer:

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