Problem $23-2$A $($Algo$)$ Scrap or rework LO P$2$

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 during storage. Management identified three alternatives for these jackets.

Jackets can be sold as scrap to a secondhand clothing shop for $$20,280.$

Jackets can be disassembled at a cost of $$6,760$ and sold to a recycler for $$40,560.$

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:

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

$(2)$ Which alternative should be chosen?