Ahngram Corp, has 1000 defective units of a product that cost $3.90 per unit in direct costs and $740 per unit in indirect cost when produced last year The units can be sold as scrap for $4.90 per unit or reworked at an additional cost of $3.40 and sold at full price of $14.70 The incremental net income (loss) from the choice of reworking the units would be