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 compary has 16,000 defective units that cost $5.80 per unit to manufacture. The units can be a) sold as is for $3.40 each, or b) reworked for $5.00 each and then sold for the full price of $9.20 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the compary se: the units as scrap or rework them? (Enter costs and losses as negative values.)