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.

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 to a second-hand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of $31,700 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 3,060 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,300, but the jackets can then be sold for their regular price of S44.00 each. Required: 1. Calculate the incremental income. Alternative 1 Alternative 2 Alternative 3 Sell to a second Disassemble and Rework and sell at hand sho sell to a re regular prices Cler Incremental revenue Incremental costs Incremental income