Exercise 25-4 (Algo) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $47,500 or reworked for $93,100 and then sold for $159,600. (a) Prepare a scrap or rework analysis of income effects. (b) Should the compary seli the units as scrap or rework them