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Problem 10-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year, it produced 5,100 denim jackets at a manufacturing cost of $42.00

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Problem 10-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year, it produced 5,100 denim jackets at a manufacturing cost of $42.00 each These jackets were damaged in the warehouse during storage Management investigated the matter and identified three alternatives for these jackets 1. Jackets can be sold to a secondhand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of $31,200 and sold to a recycler for $11.00 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 5,100 jackets into only 2,950 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,100, but the jackets can then be sold for their regular price of $44.00 each Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G $ 140 Product B $ 17e Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximus unit sales per month $85 0.4 hours see units 1.2 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require $8.500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)

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