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A company mistakenly produced 16,600 defective chargers at a cost of $138,000. The defective chargers can be sold as scrap for $51,100 or reworked

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A company mistakenly produced 16,600 defective chargers at a cost of $138,000. The defective chargers can be sold as scrap for $51,100 or reworked at a cost of $76,600. If the chargers are reworked the company could sell them for $152,000. Note: Indicate negative incremental income with a minus sign. Answer is not complete. Compute the income to scrap and the income to rework. Scrap or Rework Analysis Scrap Rework Revenue from scrapped/reworked units $ 51,100 0 Cost of reworked units 0 152,000 x Income $ 51,100 $ (76,600) Incremental income (loss) to rework Based on incremental income, should the company scrap or rework the units? The company should: Sell the units as scrap

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