
1.
Whether CL will process the raw lumber into its finished form.
Given information:
The variable cost for RL division is $100 per 100 board-feet of RL.
The variable cost for FL division is $125 per 100 board-feet of FL.
No board-feet loss is made in processing RL into FL.
The selling price of RL is $200 per 100 board feet.
The selling price of FL is $275 per 100 board feet.
2.
Whether each division should maximize its operating income contribution by adopting the action that is in the best interest of the whole.
3.
Whether each division should maximize its operating income contribution by adopting the action that is in the best interest of the whole.

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Chapter 22 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
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