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Harold Manufacturing produces. denim clothing. This year, it produced 5.150 denimjackets at a manufacturing cost of $42.00 each. Thesejackets were damaged in the warehouse during
Harold Manufacturing produces. denim clothing. This year, it produced 5.150 denimjackets at a manufacturing cost of $42.00 each. Thesejackets 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 $8.00 each. 2. Jackets can be disassembled ata cost of$31,300 and sold to a recycler for $1200 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 ofthe 5,150jackets into only 2,900jackets The remaining pieces offabric will be discarded. The cost of reworking thejackets will be $103,000, butthejackets can then be sold for their regular price of $44.00 each. Required: 1. Calculate the incremental income. Incremental revenue Incremental were Incremental income
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