Ahngram Corp. has 1,000 defective units of a product that cost $3.50 per unit in direct costs and $5.60 per unit in indirect cost when produced last year. The units can be sold as scrap for $3.10 per unit or reworked at an additional cost of $2.80 and sold at full price of $9.30. The incremental net income (loss) from the choice of reworking the units would be: rev: $0. $700. ($1,600). $1,600. $4600