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Chapter 23 Help Save & Exit Submit Problem 23-4A Sell or process LO A1 Harold...

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Chapter 23 Help Save & Exit Submit Problem 23-4A Sell or process LO A1 Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. ook 1. Jackets can be sold to a second-hand clothing shop for $6 each. 2. Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each. 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be sk int able to assemble the good parts of the 5,000 jackets into only 3,000 jackets. The remaining pleces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each Required 1. Calculate the incremental income. K Prev of 8Next

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