Calgary Lumber has a raw lumber division and a finished lumber division. The variable costs are:
-Raw lumber division: $130 per 100 board-feet of raw lumber
-Finished lumber division: $155 per 100 board-feet of finished lumber
Assume that there is no board-feet loss in processing raw lumber into finished lumber. Raw Lumber can be sold a $255 per 100 board-feet. Finished lumber can be sold at $330 per 100 board-feet.
1. Should Calgary Lumber process raw lumber into it's finished form? Show your calculations