Garcia Company has 10,000 units of its product that were produced at a cost of $150,000. The units were damaged in a rainstorm Garcia can sell the units as scrap for $20,000, or it can rework the units at a cost of $38,000 and then sell them for $50,000 (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? Scrap Rework (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income $ 90,000 Incremental income (b) The company should