QS 23-9 (Algo) Scrap or rework LO P2 Book Garcia Company has 10.900 units of its product that were produced at a cost of $163,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $21,800, or it can rework the units at a cost of $40,700 and then sell them for $53,600. (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 Scrap Rework erences Revenue from scrapped/reworked units Cost of reworked units Income $ 0 $ 0 Incremental income (b) The company should Check my wow