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Hip Manufacturing produces denim clothing. This year it produced 3 , 3 4 0 denim jackets at a cost of $ 1 0 0 ,

Hip Manufacturing produces denim clothing. This year it produced 3,340 denim jackets at a cost of $100,200. These jackets were damaged in the warehouse during storage. Management identified three alternatives for these jackets.
Jackets can be sold as scrap to a secondhand clothing shop for $20,040.
Jackets can be disassembled at a cost of $6,680 and sold to a recycler for $40,080.
Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $113,560, and the jackets can then be sold for $150,300.
Required:
(1) Compute the income for each alternative.
(2) Which alternative should be chosen?
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