Problem 10-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year, it produced 5,220 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 $7.00 each. 2. Jackets can be disassembled at a cost of $31,900 and sold to a recycler for $12.00 each. 3. Jackets can be reworked and turned into good jackets. However, wi th the damage, management estimates it will be able to assemble the good parts of the 5,220 jackets into only 3,010 jackets. The re reworking the jackets will be $102,300, but the jackets can then be sold for their regular price of $45.00 each. maining pleces of fabric will be discarded. The cost of Required: 1. Calculate the incremental income. Alternative 2 Sell to a second Disassemble and Rework and sell Alternative 1 Alternative hand shop to a recycler regular prices Incremental revenue 36,540 Incremental costs Incremental income 36,540 S Prev 1 of 1 Next 16