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Or maybe this damage is repairable?
Yes. A good metal man should be able to repair it. Looks like it's Jet Hot coated?
The bubs on my SP were a slightly larger diameter exhaust than the original, so you may want to measure the muffler to head pipe diameters both ID and OD before you order a replacement or be prepared to modify with an internal exhaust pipe expander on your replacement muffler of choice.John H