ABC Lumber spent $1,000 cutting down a tree. The result was 40 pieces of unfinished lumber that sell for $20.00 each and 100 bags of sawdust that sell for $1.00 each. If the unfinished pieces of lumber are processed into finished lumber at a cost of $8.00 each, they will sell for $35.00. A bag of sawdust can be processed into Presto Logs that sells for $1.25 at a cost of $0.75 per bag. Which of the following statements are true concerning whether the unfinished pieces of lumber should be processed into finished lumber and whether the sawdust should be processed into Presto Logs?
1) Processing the unfinished pieces of lumber into finished lumber will result in a profit of $27.00 per piece.
2) Processing the unfinished pieces of lumber into finished lumber will result in a loss of $3.00 per piece.
3) Processing the sawdust into Presto Logs will result in a profit of $0.50 per bag.
4) Processing the sawdust into Presto Logs will result in a loss of $0.25 per bag.