Hip Manufacturing produces denim clothing. This year It produced 3,140 denim jackets at a cost of...

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Hip Manufacturing produces denim clothing. This year It produced 3,140 denim jackets at a cost of $94,200. 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 $18,840. 2. Jackets can be disassembled at a cost of $6,280 and sold to a recycler for $37,680. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $106,760, and the Jackets can then be sold for $141,300. Required: (1) Compute the Income for each alternative. (2) Which alternative should be chosen? Scrap, Recycle or Rework Analysis Revenue from scrap/recycle/rework Cost of recycled/reworked units Income Scrap Recycle Rework Hip Manufacturing produces denim clothing. This year It produced 3,140 denim jackets at a cost of $94,200. 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 $18,840. 2. Jackets can be disassembled at a cost of $6,280 and sold to a recycler for $37,680. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $106,760, and the Jackets can then be sold for $141,300. Required: (1) Compute the Income for each alternative. (2) Which alternative should be chosen? Scrap, Recycle or Rework Analysis Revenue from scrap/recycle/rework Cost of recycled/reworked units Income Scrap Recycle Rework

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Lets break down each alternative and calculate the income for ea... View the full answer