Harold Manufacturing produces denim clothing. This year, it produced 5,230 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 second-hand clothing shop for $7.00 each.
2. Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $13.00 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 5,230 jackets into only 3,100 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $103,000, but the jackets can then be sold for their regular price of $45.00 each.



Required:
1.
Calculate the incremental income.

Alternative 1 Sell to a second-hand shop Alternative 2 Disassemble and sell to a recycler Alternative 3 Rework and sell at regular prices
Incremental revenue
Incremental costs
Incremental income

Answers

Answer 1

Answer:

the best option is number 1, sell the jackets to a secondhand store at $7 will yield $36,610 in profits

Explanation:

the previous manufacturing costs can be considered sunk costs because they  cannot be recovered, so we must analyze the options to determine which one yields the highest profit.

option 1

sell 5,230 jackets to secondhand stores at $7 each, profit = $36,610

option 2

disassemble the jackets and sell them at $12 each, profit = $67,990 - $32,000 (disassembling costs) =  $35,990

option 3

rework the jackets, profit = ($45 x 3,100) - $103,000 = $36,500

the best option is number 1, sell the jackets to a secondhand store at $7 will yield $36,610 in profits


Related Questions

The total amount paid by a borrower to a lender for the use of credit?

Answers

Answer:

Finance charge

Explanation:

The finance charge represents the total of all costs associated with borrowing money. It includes charges such as the interest, penalties, application fee, insurance on the loan, and any other fees that a lender may impose on the borrower.

While interest is the cost of borrowing money, it is not the only fee for a borrower to obtain credit. The finance charge allows lenders to make profits on the funds they extend to borrowers.

The risk that a bank will receive less interest from a lending product than it originally anticipated is known as __________.

Answers

I think the best answers would be Interest rate risk. Interest rate risk is the potential for investment losses that result in a change in interest rates.

The risk that a bank will receive less interest from a lending product than it originally anticipated is known as interest rate risk. Hence, Option (A) is correct.

Interest rate risk refers to the potential for a bank to receive less interest from a lending product than it initially expected due to changes in interest rates.

When a bank lends money, it typically sets an interest rate based on current market conditions.

However, if interest rates decrease, borrowers may have an incentive to refinance their loans at lower rates, resulting in the bank receiving less interest income than anticipated.

Conversely, if interest rates increase, borrowers may be less likely to borrow, which can also lead to lower interest income for the bank.

Thus, interest rate risk is a significant concern for banks as it can impact their profitability and overall financial performance.

Learn more about the interest rate here:

https://brainly.com/question/29051555

#SPJ2

The risk that a bank will receive less interest from a lending product than it originally anticipated is known as __________.

a)interest rate risk

b)operational risk

c)prepayment risk

d)market risk

What type of inventory does paint that has been colored but not yet put into cans represent for a paint company

Answers

Answer:

Work in process inventory

Explanation:

Work in process inventory is made up of those goods that are partially completed in the production process.

The various stages inventory goes through are raw material inventory, work in process inventory, and finished goods inventory.

When some work has already been done on the raw material but it is not ready to leave the production process this is work in process.

This is exemplified in the given scenario where paint has been colored but not yet put into cans.

Lee purchased stock with an initial share price of $32, and sold it when the share price was $50. While he owned the stock, he earned $2 in dividends. What was his total percentage return on the investment

Answers

Answer: 66.7%

Explanation:

His return on the stock is;

= (New price - Old price + dividends) / Old price

= (50 - 32 + 2) / 32

= 20/ 32

= 66.7%

The image shows a performance graph.


A graph titled Relationship between Anxiety and Performance. X axis is labeled Anxiety with an arrow pointing right labeled None at left and Extreme at right. Y axis is labeled performance with an arrow pointing up labeled Poor at bottom and Excellent at top. A line forms an arch starting at Poor/none at left, rising to excellent in the middle, and ending at poor/extreme at right.

Which is the best interpretation of the graph?


A small amount of anxiety is not enough to help students perform better on a test.

The higher a student’s anxiety, the greater the probability of a good test score.

A small amount of anxiety can help students perform better on tests.

The higher a student’s anxiety, the lower the likelihood of overcoming it.

please answer correctly ..... or my face will look like this 0-0 and then i will say bruhhh

Answers

Answer:

C.

Explanation:

just got it right on Edge

Considering the available options and the graph image, the best interpretation of the graph is that "a small amount of anxiety can help students perform better on tests."

This is evident in the fact that at the middle of anxiety rating, that is where there is the highest performance.

While at the lowest and highest anxiety level, the performance was at a lower level.

Hence, in this case, it is concluded that the correct answer is option C. "A small amount of anxiety can help students perform better on tests."

Learn more about anxiety here: https://brainly.com/question/2101302

The __ tests various scenarios by entering spreadsheet data to recalculate formulas and see the impact of proposed changes

Answers

Answer:

What-if Analysis

Explanation:

The what-if analysis is the process for value changes that shows how those changes would impact the formulas in the given sheet. It comprises of the scenarios, goal seek and the data tables

In this test if the data is entered so it again calculated the formulas in order to see the changes made in the given sheet

Hence, the same is to be considered  

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