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Harold Manufacturing produces denim clothing This year, it produced 5.280 denim jackets at a manufacturing cost of $41.00 each These jackets were damaged in the
Harold Manufacturing produces denim clothing This year, it produced 5.280 denim jackets at a manufacturing cost of $41.00 each These jackets were damaged in the warehouse during storage Management investigated the matter and identified three alternatives for these jackets poliit 1. Jackets can be sold as is to a secondhand clothing shop for $8.00 each 2. Jackets can be disassembled at a cost of $32,500 and sold to a recycler for $12.00 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 5280 jackets into only 2.930 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101700, but the jackets can then be sold for their regular price of $4400 each Required: 1. Calculate the incremental income. Alternative 1 Soll to a secondhand shop Alternative 2 Alternativo 3 Disassemble and Rework and sell at sell to a recycler regular pricos Incremental revenue Incremental costs Incremental income
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