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SCRAP OR REWORK The Company has discovered 600 units of product are defective. The units cost $200 each to manufacture. Management must decide if they should sell the units "as is" or rework them to the usual quality expected. If they sell as is, all 600 units will be sold as scrap for $180 each. If the company "reworks" or corrects the 600 defective units the can then be sold for $500 each. There would be a cost of $100 per unit to rework and correct the defects. If the company sells the defective units they will be able to use the time to make 500 new units in the same amount of time it would take to rework the 600 defects. The sales price of the new units would be $500 per unit and the cost would be $200 per unit to manufacture. *** Required 1) What is the incremental income if sold as scrap and made new? 2) What is the incremental income if reworked and then sold? 3) Which option would you recommend? Write answer on PDF. Show your work on your PDF upload