Cobe Company has manufactured 200 partially finished cabinets ata cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000. to} Prepare a sell as is or process further analysis of income effects. lb} Should the cabinets be sold as is or processed further and then sold? Revenue Costs Income Incremental income (loss) to process further [b] The company should: company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units hat 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. 3} Prepare a scrap or rework analysis of income effects. b} Should the company sell the units as scrap or rework them? Revenue from scrappedl'reworked units Cost of reworked unite Income [b] The company should