Ahngram Corp. has 1,000 defective units of a product that cost $2.20 per unit in direct costs and $5.70 per unit in indirect cost when produced last year. The units can be sold as scrap for $3.20 per unit or reworked at an additional cost of $1.70 and sold at full price of $9.60. The incremental net income (loss) from the choice of reworking the units would be:

• $1,700.

• ($1,700).

• $7,900.

• $3,200.

• $0.