Its product that were produced at a cost of $174,000. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $23,200, or it can rework the units at a cost of $42,800 and then sell them for $56,300. (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 A 0

Garcla can sell the units as scrap for $23,200 ot that were produced at a cost of $174,000. The units were damaged in a rainstorm. (a) Prepare a scrap or rework analysis of income effects. (b) Should Garcla sell the units as scrap or rework them and then sell them