A company must decide between scrapping or reworking units that do not pass inspection. The company has $44,000$ defective units that have already cost $$272,000$ to manufacture. The units can be sold as scrap for $$160,800$ or reworked for $$204,000$ and then sold for $$385,200.$ If the company decides to rework the units, incremental income equals:

Multiple Choice

$$ $$20,400.$

$$ $$181,200.$

$$ $$(90,600).$

$$ $$38,400.$

$$ $$224,400.$