12 A company must decide between scrapping or reworking units that do not pass inspection. The company has 10,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $31,000 or reworked for $46,000 and then sold for $85,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? 8 01:13:19 (a) Scrap or Rework Analysis Scrap Rework Revenue Costs Income (loss) Incremental income (or loss) (b) The company should