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Paul Bunyon Lumber

Question 105

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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:  Sales Value  Additional  Sales Value after  Product  at Split-off  Variable Costs  FurtherProcessing  Green lumber $159,600$24,000$178,000 Rough lumber 124,00028,200173,600 Sawdust 102,00019,600130,000\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}
-The additional profit that would result from processing rough lumber further is


A) $21,400.
B) $49,600.
C) $145,400.
D) $95,800.

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