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Question: chunderbuggle ltd is a lumber company daytoday operations consist of...

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Chunderbuggle Ltd is a lumber company. Day-to-day operations consist of cutting down trees and processing logs into slabs of timber. 

During this process, sawdust is produced in large quantities. The company can sell sawdust for $20 per tonne. 

The company has the option of pressing this sawdust into cardboard by using a special machine. It can then sell cardboard for $60 per tonne. 

In deciding whether to produce cardboard, managers must consider:

Select one:
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