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Problem 23-2A (Algo) Scrap or rework LO P2 Hip Manufacturing produces denim clothing. This year it produced 3,180 denim jackets at a cost of $95,400.

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Problem 23-2A (Algo) Scrap or rework LO P2 Hip Manufacturing produces denim clothing. This year it produced 3,180 denim jackets at a cost of $95,400. These jackets were damaged in the warehouse during storage. Management identified three aiternatives for these jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $19,080. 2. Jackets can be disassembled at a cost of $6,360 and sold to a recycler for $38,160. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $108,120, and the jackets can then be sold for $143,100. Required: (i) Compute the income for each alternative. (2) Which alternative should be chosen

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