Harold Manufacturing produces denim clothing. This year, it produced 5.000 denim jackets at a manufac- Problem 104A turing cost of $45 each. These jackets were damaged in the warehouse during storage. Management inves- Sell or process tigated the matter and identified three alternatives for these jackets. 1. Jackets can be sold as is to a secondhand clothing shop for $6 each. 2. Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 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 5,000 jackets into only 3.000 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each. Required Which alternative should Harold choose? Show analysis for each alternative. Checik incrementatincor faratem ative 2520000 Problem 104A Sell or process LO P2 Harold Manufacturing produces denim clothing. This year, it produced 5,160 denim jackets at a manufacturing cost of $42.00 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 as is to a secondhand clothing shop for $7.00 each. 2. Jackets can be disassembled at a cost of $32,100 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 5,160 jackets into only 2,920 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 $44.00 each. Required: 1. Calculate the incremental income