Garcia Company has $11,700$ units of its product that were produced at a cost of $$175,500.$ The units were damaged in a rainstorm. Garcia can sell the units as scrap for $$46,800,$ or it can rework the units at a cost of $$66,500$ and then sell them for $$87,500.$

$($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?