A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $57,000 or reworked for $93,100 and then sold for $159,600. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrop or rework them