Garcia Company has $10,000$ units of its product that were produced at a cost of $$150,000.$ The units were damaged in a rainstorm. Garcia can sell the units as scrap for $$20,000,$ or it can rework the units at a cost of $$38,000$ and then seil them for $$50,000.$

$($a$)$ Prepare a scrap or rework analysis of income effects.

$($b$)$ Should Garcia sell the units as scrap or rework them and then sell them?

$\backslash$table$[[($a$)$ Scrap or Rework Analysis,Scrap,Rework$],[$Revenue from scrapsed$/$reworked units,,$],[$Cost of reworked units,,$],[$Income$,,],[,,],[$Incremental incame,,$]]$