Exercise 23-4 Scrap or rework LO P2 A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 10.000 defective units that cost $5.60 per unit to manufacture. The units can be a) sold as is for $3.40 each, or b) reworked for $4.90 each and then sold for the full price of $9.00 each What is the incremental income from selling the units as scrap and roworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values) Answer is complete but not entirely correct Rework Salas Berap 34.000 Sales Sants Cost to work units OOO $ (49000) Sales Broworld units 81.000 Incremence) $ 34000 12.000 The company should (remont S rov 3 of 8 h NON