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A company must decide between scrapping or reworking units that do not pass inspection. The company has 14.000 defective units that cost $5.60 per unit

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 14.000 defective units that cost $5.60 per unit to manufacture. The units can be sold as in for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $10.00 each if the units are sold as is, the company will be able to build 14,000 units at a cost of $5.60 each, and sell them at this full price of $10.00 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell company sell the units as scrap or rework them? (Deductible amounts should be indicated with a minus sign.)

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