Problem $10-2$A $($Algo$)$ Scrap or rework LO P$2$

Hip Manufacturing produces denim clothing. This year it produced $3,400$ denim jackets at a cost of $$102,000.$ These jackets were damaged in the warehouse during storage. Management identified three alternatives for these jackets.

Jackets can be sold as scrap to a secondhand clothing shop for $$20,400.$

Jackets can be disassembled at a cost of $$6,800$ and sold to a recycler for $$40,800.$

Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $$115,600,$ and the jackets can then be sold for $$153,000.$

Required:

$(1)$ Compute the income for each alternative.

$(2)$ Which alternative should be chosen?