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gaun 10.00 points A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost
gaun 10.00 points A company must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.70 per unit to manufacture. The units can be sold as is for $2.50 each, or they can be reworked for S3.50 each and then sold for the full price of $10.10 each. If the units are sold as is, the company will also be able to build 19,000 replacement units at a cost of $5.70 each, and sell them at the full price of $10.10 each. (1) What is the incremental income from selling the units as scrap? (Omit the "$" sign in your response.) Incremental income (2) What is the incremental income from reworking and selling the units? (Omit the "$" sign in your response.) Incremental income $ (3) What must the company decide? OThe units should be reworked The units should not be reworked
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