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BT&T Corporation manufactures telephones. Recently, the company produced a batch of 500 defective telephones at a cost of $8,000. BT&T can sell these telephones as

BT&T Corporation manufactures telephones. Recently, the company produced a batch of 500 defective telephones at a cost of $8,000. BT&T can sell these telephones as scrap for $8 each. It can also rework the entire batch at a cost of $5,500, after which the telephones could be sold for $19 per unit.

If BT&T reworks the defective telephones, by how much will its operating income change?

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