Garcia Company has 11,400 units of its product that were produced at a cost of $171,000. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $45,600, or it can rework the units at a cost of $65,000 and then sell them for $85,500. (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? (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income Incremental income (b) The company should: Scrap Rework