Ch. 10 Homework i 1.66 2 Exercise 10-4 (Static) Scrap or rework LO P2 points Saved A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $78,000 or reworked for $99,000 and then sold for $187,000. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? eBook (a) Scrap or Rework Analysis Hint Revenue from scrapped/reworked units Cost of reworked units Print Income Incremental income Scrap Rework $ 0 $ 0 References (b) The company should: Rework the units