Question: please help with this Problem 23-2A (Algo) Scrap or rework LO P2 Hip Manufacturing produces denim clothing. This year it produced 3,380 denim jackets at
Problem 23-2A (Algo) Scrap or rework LO P2 Hip Manufacturing produces denim clothing. This year it produced 3,380 denim jackets at a cost of $101,400, These jackets were damaged in the warehouse duting storage. Management Identified three alternatives for these Jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $20,280. 2. Jackets can be disassembled at a cost of $6,760 and sold to a recycler for $40,560, 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $114,920, and the jackets can then be sold for $152,100. Required: (t) Compute the income for each altemative. (2) Which alternative should be chosen
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