Exercise 23-4 Scrap or rework LO P2 A company with excess capacity must decide between scrapping or reworking onts that do not pass inspection. The company has 13,000 defective units that cost $5.20 per unit to manufacture. The units can be sold as is for $3.40 och orked for S4 90 each and then sold for the full price of $8.60 each What is the incremental income from seling the units as scrap and reworking and selling the units? Should the company ses the ants s scrap or rework them? (Enter costs and losses as negative values.) Sale or incremental income The company should