Hip Manufacturing produces denim clothing. This year it produced 3,000 denim jackets at a cost of $90,000. These jackets were damaged in the warehouse during storage. Management identified three alternatives for these jackets.

1. Jackets can be sold as scrap to a secondhand clothing shop for $18,000.
2. Jackets can be disassembled at a cost of $6,000 and sold to a recycler for $36,000.
3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $102,000, and the jackets can then be sold for $135,000.

Required

(1) Compute the income for each alternative. 

(2) Which alternative should be chosen?