Exercise 234 (Algo) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufactute. The units can be sold as scrap for $48,000 or reworked for $72,000 and then sold for $142,400. (a) Prepare a scrap or rework analysis of income effects. (b) Shouid the company sell the units as scrap or rework them