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A company must dectde between scrapeing or reworking units that do not pase inspection The compary has 16,000 defective units that have aireacy cost $132000

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A company must dectde between scrapeing or reworking units that do not pase inspection The compary has 16,000 defective units that have aireacy cost $132000 to manufacture The units can be soid as scrap for $40,000 or reworked for $73,600 and then sold for $129,600. (a) Prepare a scrap or rework analysis of income effects (b) Should the company sell the units as scrap or rework them

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