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A company must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.10 per unit

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 11,000 defective units that cost $6.10 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for the full price of $9.80 each. If the units are sold as is, the company will also be able to build 11,000 replacement units at a cost of $6.10 each, and sell them at the full price of $9.80 each. What is the incremental income from soiling the units as scrap? What is the incremental income from reworking and selling the units? What must the company decide? The units should be reworked. The units should not be reworked

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