Garcia Company has $12,000$ units of its product that were produced at a cost of $$180,000.$ The units were damaged in a rainstorm. Garcia can sell the units as scrap for $$24,000,$ or it can rework the units at a cost of $$44,000$ and then sell them for $$57,900.$

$($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?