Exercise 23-4 (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 $13,000 to manufacture. The units can be sold as scrap for $49,600 or reworked for $78,400 and then sold for $132,800. (a) Prepare a scrap or rework analysis of income effects: (b) Should the compony sell the units as scrap or rework them