Chang Industries has 1,500 defective units of product that have already cost $13.50 each to produce. A salvage company will purchase the defective units as they are for $4.50 each. Chang's production manager reports that the defects can be corrected for $6.50 per unit, enabling them to be sold at their regular market price of $20.00. The incremental income or loss on reworking the units is:

$13,500 loss.

$23,250 income.

$20,250 income.

$9,750 loss.

$13,500 income.