Response to the following problem:
Canyon Ferry Lumber Company incurs a cost of $180 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $275 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $300 per hundred board feet, which can be sold for $450 per hundred board feet.
What is the amount of
(a) the differential revenue,
(b) differential cost, and
(c) differential income for processing rough-cut lumber into finished cut?