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Hip Manufacturing produces denim clothing. This year it produced 3,140 denim jackets at a cost of $94,200. These jackets were damaged in the warehouse during
Hip Manufacturing produces denim clothing. This year it produced 3,140 denim jackets at a cost of $94,200. These jackets were damaged in the warehouse during storage. Management identified three altematives for these jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $18,840. 2. Jackets can be disassembled at a cost of $6,280 and sold to a recycler for $37,680. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $106.760. and the jackets can then be sold for $141,300. Required: (1) Compute the income for each alternative. (2) Which alternative should be chosen? Edge Company produces two models of its product with the same machine. The machine has a capacity of 156 hours per month. The following information is available 2. How many units of each model should the company produce? How much total contribution margin does this mbx produce per month? 3. Assume the maximum demand for the Standard model is 80 units (not 550 units). How mamy units of each model should the company produce? How much total contribution margin does this mix produce nar month
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