Garcia Company has 10,200 units of its product that were produced at a cost of $153,000. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $20,400, or it can rework the units at a cost of $38,600 and then sell them for $50,800. (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? (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income Scrap Rework Incremental income (b) The company should: