Harold Manufacturing produces denim clothing. This year, it produced 5,220 denim jackets at a manufacturing cost of $42.00 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 $7.00 each.
2) Jackets can be disassembled at a cost of $32,700 and sold to a recycler for $12.00 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 5,220 jackets into only 2,970 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $101,900, but the jackets can then be sold for their regular price of $44.00 each.
Required:
Calculate the incremental income.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Harold Manufacturing produces denim clothing. This year, it produced 5,220 denim jackets at a manufacturing cost of $42.00 each. These ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following should be disclosed by a company providing health care benefits to its retirees? I. The assumed health care cost trend rate used to measure the expected cost of benefits covered by the plan. II.
Answers (1)
Madison wants to open a restaurant and plans to employ a staff of about 10 people, including wait staff and cooks. what type of organization is madison planning to create? centralized specialized narrow flat departmentalized
Answers (1)
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $52,000 8,000
Answers (1)
Suppose that many seople who earn a living growing pumpkins decide they can make more money selling fruit smoothies and switch coupations.
Answers (1)
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet. A) True B) False
Answers (1)
New Questions in Business
You have two investments. The value of Investment A at the end of April was $500, at the end of May was $600, and at the end of June was $400.
Answers (1)
2017 Sold $1,351,700 of merchandise (that had cost $981,800) on credit, terms n/30. Wrote off $21,500 of uncollectible accounts receivable. Received $670,400 cash in payment of accounts receivable.
Answers (1)
Which of the following types of value chain processes directly creates and delivers goods and services to customers? General management processes Postproduction processes Support processes Core processes
Answers (1)
Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on available-for-sale securities of $200,000.
Answers (1)
Pirate Corporation acquired 85 percent of Ship Company's voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each.
Answers (1)