m14-Part B (Ch. 10-12) Help Save & Exit Submit Harold Manufacturing produces den

Question

m14-Part B (Ch. 10-12) Help Save & Exit Submit Harold Manufacturing produces denim clothing. This year, it produced 5,110 denim jackets at a manufacturing cost of $41.00 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 to a secondhand clothing shop for $700 each. 2 Jackets can be disa 3. Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to at a cost of $33,000 and sold to a recycler for $11.00 each. assemble the good parts of the 5,110 jackets into only 3,020 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,800, but the jackets can then be sold for their regular price of $46.00 each. Required: Sell to a second and Rework and sell at to search

Explanation / Answer

Incremental Income Alt-1 Alt-2 Alt-3 Incremental Revenue         35,770        56,210 1,38,920 Incremental Cost                  -          33,000 1,01,800 Incremental Income         35,770        23,210      37,120 Incremental Inputs Alt-1 Alt-2 Alt-3 Rate                   7 11 46 Qty           5,110 5110 3020

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