Ahngram Corp. has 1,000 defective units of a product that cost $3.60 per unit in direct costs and $7.10 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.60 per unit or reworked at an additional cost of $3.10 and sold at full price of $13.80. The incremental net income (loss) from the choice of reworking the units would be: Multiple Choice

$0.

($3,100).

$10,700.

$4,600.

$3,100