Business, 18.12.2019 02:31, werty775581

Primrose yard receives 15,000 large trees each year that they process into 15,000 rough logs. currently, primrose sells the rough logs for $50 each. primrose is considering processing the logs further into refined lumber.
each log can be processed into 350 feet of refined lumber at an additional cost of $0.20 per foot. the refined lumber can be sold for $0.80 per foot.

assume that the cost of getting the 15,000 large trees falls by half.

should primrose sell the rough logs at split-off or process it further?

a. it should sell at split-off because the decrease in cost price will increase the selling price of the logs.

b. it should sell at split-off because the reduction in the cost of the trees is irrelevant.

c. it should process further because the reduction in the cost of the trees is irrelevant.

d. it should process further because the reduction in the cost of trees makes that option more profitable than it was before.

e. it should process further because the cost reduction will decrease the processing cost.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:10, allieallie

Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.

Answers: 1

continue

Business, 22.06.2019 19:00, sharri44

Read the scenario. alfonso is 19 years old and has a high school diploma. recently, he was promoted to assistant manager at the fast-food restaurant where he has worked since the age of sixteen. his dream is to become the restaurant’s manager. what is his best option for achieving his dream? he should find another job and work his way up to a higher position. he should hope that his manager transfers to another location and that he is his replacement. he should attend classes at the local college to receive training in management. he should work hard, work longer hours, and remain assistant manager.

Answers: 2

continue

Business, 22.06.2019 19:10, jonmorton159

The stock of grommet corporation, a u. s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u. s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u. s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u. s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?

Answers: 3

continue

Business, 22.06.2019 19:50, TylieW

Aproperty title search firm is contemplating using online software to increase its search productivity. currently an average of 40 minutes is needed to do a title search. the researcher cost is $2 per minute. clients are charged a fee of $400. company a's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. company b's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. which option would have the higher productivity in terms of revenue per dollar of input?

Answers: 1

continue

Do you know the correct answer?

Primrose yard receives 15,000 large trees each year that they process into 15,000 rough logs. curren...