Question: Chapter 23: Homework Help Save & Exit Sub Check my worlu Problem 23-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year,
Chapter 23: Homework Help Save & Exit Sub Check my worlu Problem 23-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year, it produced 5150 denim jackets at a manufacturing cost of $4100 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets 1. Jackets can be sold to a secondhand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of $31100 and sold to a recycler for $11.00 each 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,150 jackets into only 3,010 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,500, but the jackets can then be sold for their regular price of $40.00 each Required: 1. Calculate the incremental income. Alternativet Sell to a second. hand shop Alternative 2 Alternative 3 Disassemble and Rework and sell at sell to a recycler regular prices Incremental revenue Incremental income MacBook Air
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