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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Harold Manufacturing produces denim clothing. This year, it produced 5,150 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 second-hand clothing shop for $8.00 each. 2. Jackets can be disassembled at a cost of $31,600 and sold to a recycler for $11.00 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 5,150 jackets into only 2,980 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,900, but the jackets can then be sold for their regular price of $46.00 each. Calculate the incremental income. for alternative 1 ,2 ,3 incremental revenue, incremental cost, incremental net income.
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