Hip Manufacturing produces denim clothing. This year it produced 3,360 denim jackets at a cost of $100,800. 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 $20,160. 2. Jackets can be disassembled at a cost of $6,720 and sold to a recycler for $40,320. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $114,240, and the jackets can then be sold for $151,200. Required: (1) Compute the income for each alternative. (2) Which alternative should be chosen