Seved QS 10-9 (Algo) Scrap or rework LO P2 Garcia Company has 10,500 units of its product that were produced at a cost of $157,500. The units were damaged in a rainstorm Garcia can sell the units as scrap for $21,000, or it can rework the units at a cost of $39.500 and then sell them for $52.000 (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 Revenue from scrapped/reworked units Cost of reworked units S 05 0 Income Incremental income (b) The company should Help