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Garcia Company has 11,000 units of its product that were produced at a cost of $165,000. The units were damaged in a rainstorm. Garcia can

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Garcia Company has 11,000 units of its product that were produced at a cost of $165,000. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $44,000, or it can rework the units at a cost of $63,000 and then sell them for $82,900. (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

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