chp23 hw 5

Garcia Company has 10,300 units of its product that were produced at a cost of $154,500. The units were damaged in a rainstorm Garcia can sell the units as scrap for $20,600, or it can rework the units at a cost of $38,900 and then sell them for $51200 (a) Prepare a scrap or rework analysis of income effects (b) Should Garcia sell the units as scrap or rework them and then sell them? Scrap Rework (a) Scmp or Rework Analysis Revenue from scrappedireworked units Cost of reworked units Income Incremental income (b) The company should