5 Garcia Company has 10,700 units of its product that were produced at a cost of $160,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $21,400, or it can rework the units at a cost of $40,100 and then sell them for $52,800. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcia sell the units as scrap or rework them and then sell them? 03:09:34) (a) Scrap or Rework Analysis Scrap Rework Skipped Revenue from scrapped/reworked units Cost of reworked units Income Incremental income (b) The company should: $ 0 $ 0