Problem 23-4A Sell or process LO P2 Harold Manufacturing produces denim clothing. This year it produced 5130 denim jackets at a manufacturing cost of $4200 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 as is to a secondhand clothing shop for $700 each 2. Jackets can be disassembled at a cost of $31,900 and sold to a recycler for $1100 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 5,130 jackets into only 3.050 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101.500, but the jackets can then be sold for their regular price of $4400 each Required: 1. Calculate the incremental income Alternative 1 Self to secondhand shop Alternative 2 Disassemble and sell to a recycler Alternative Rework and salat regular prices Incremental revenue Incremental costs PG 101 H Next 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 5,130 jackets into only 3,050 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101.506, but the jackets can then be sold for their regular price of $44.00 each Required: 1. Calculate the incremental income Alternative 1 Sell to a secondhand shop Alternative 2 Disassemble and sell to a recycler Alternative 3 Rework and sell at regular prices Incremental revenue Incremental costs Incremental income Prey 1 of 1 Next