Ahngram Corp. has 1,000 defective units of a product that cost $4.00 per unit in direct costs and $7.50 per unit in indirect cost when produced last year. The units can be sold as scrap for $5.00 per unit or reworked at an additional cost of $3.50 and sold at full price of $15.00. The incremental net income (loss) from the choice of reworking the units would be: