A company must decide between scrapping or reworking units that do not pass inspection. The company has $13,000$ defective units that have already cost $$132,000$ to manufacture. The units can be sold as scrap for $$42,900$ or reworked for $$59,800$ and then sold for $$110,500.$

$($a$)$ Prepare a scrap or rework analysis of income effects.

$($b$)$ Should the company sell the units as scrap or rework them?

$\backslash$table$[[($a$)$ Scrap or Rework Analysis,,$],[$Revenue from scrapped$/$reworked units,,Rework$],[$Cost of reworked units,,$],[$Income$,,],[$Incremental income,,$],[($b$)$ The company should:,,$]]$