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Problem 23-4A Sell or process LO P1, A1 Harold Manufacturing produces denim clothing. This year, it produced 5,230 denim jackets at a manufacturing cost of

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Problem 23-4A Sell or process LO P1, A1 Harold Manufacturing produces denim clothing. This year, it produced 5,230 denim jackets at a manufacturing cost of $43.00 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three altenatives for these jackets. 1. Jackets can be sold to a second-hand clothing shop for $8.00 each. 2 Jackets can be disassembled at a cost of $31,600 and sold to a recycler for $12.00 each. 3. Jackets can be reworked and tuned int to good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,230 jackets into only 2,900 jackets. The remaining pieces of fabnic will be discarded. The cost of reworking the jackets will be $102,800, but the jackets can then be sold for their regular price of $44.00 each Required 1. Calculate the incremental income. Alternative 3 Rework and sell at regular prices Alternative 1 Alternative 2 Sell to a second-Disassemble and hand shop sell to a recycler Incremental revenue Incremental costs Incremental income wsssswwsss

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