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Problem 23-4A Sell or process LO P2 Harold Manufacturing produces denim clothing. This year, it produced 5.240 denim jackets at a manufacturing cost of $4100
Problem 23-4A Sell or process LO P2 Harold Manufacturing produces denim clothing. This year, it produced 5.240 denim jackets at a manufacturing cost of $4100 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 $31,600 and sold to a recycler for 51100 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 5 240 jackets into only 2.940 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be 5101100, but the jackets can then be sold for their regular price of 5400 each Required: 1. Calculate the incremental income Alle 2 Alematie Abente Salto comando Incremental revenue Incremental costs Incremental income 5 os PARemate
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