Hip Manufacturing produces denim clothing. This year it produced 3,260 denim jackets at a cost of $97,800. These jackets were damaged in the warehouse during storage. Management identified three alternatives for these jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $19,560. 2. Jackets can be disassembled at a cost of $6,520 and sold to a recycler for $39,120. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $110,840, and the jackets can then be sold for $146,700. Required: (1) Compute the income for each alternative. (2) Which alternative should be chosen? Scrap, Recycle or Rework Analysis Revenue from scrap/recycle/rework Cost of recycled/reworked units Income Scrap Recycle Rework