ahngram corp. has 1000 defective units of a product that cost two dollars per unit indirect costs and $5.50 per unit indirect cost when produced last year. The unit can be sold as scrap for three dollars per unit or reworks add an additional cost of $1.50 and sold at full price of nine dollars. The incremental their income (loss) from the choice of reworking the units would be:

$3000

$0

($1,500)

$7500

$1500