Bunyan Lumber Case Solution

This case is about Business

The business Bunyan Lumber LLC harvest lumber and after that provide logs to lumber mills for being offered. The umber that is offered by Bunyan Lumber LLC is cost its ‘pond worth’. This is the quantity that a mill wants to spend for the log to get provided straight. The cost that is estimated to provide the logs to a mill is concur in dollars per countless board feet (MBF), this rate can likewise differ depending upon the grade and condition of the logs. Bunyan Lumber LLC source lumber from their own forest that they planted over 20 years back. This timberland is made totally of Douglas fir trees and the cost per MBF varies between grades as follows. Grade one wood costs $1,050 per MBF, grade 2 wood costs $925 per MBF and grade 3 wood costs $770 per MBF. The owner of the business thinks that the pond worth of this particular lumber will improve to accompany the inflation rate. By thinning the forest, the business thinks they can get an extra capital of $1,000 per acre.

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