Hip Manufacturing produces denim clothing. This year it produced 3,220 denim jackets at a cost of $96,600. These jackets were damaged in the warehouse during storage. Management identified three alternatives for these jackets. 1. Jackets can be sold as scrap to a secondhand clothing shop for $19,320. 2. Jackets can be disassembled at a cost of $6,440 and sold to a recycler for $38,640. 3. Jackets can be reworked and turned into good jackets. The cost of reworking the jackets will be $109,480, and the jackets can then be sold for $144,900. Required: (1) Compute the income for each alternative. (2) Which alternative should be chosen
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