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 13,000 defective units that cost $5.80 per unit to manufacture. The units can be a) sold as is for $2.80 each, or b) reworked for $4.80 each and then sold for the full price of $8.60 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Answer is not complete. Sale as Scrap $ 36,400 Rework Sales of scrap units Cost to towork units Sales of reworked units Incremental income (oss) ooo S 36,400 $ 0 The company should rework