Question: A company must decide between scrapping or reworking units that do not pass inspection. The company has 4 4 , 0 0 0 defective units

A company must decide between scrapping or reworking units that do not pass inspection. The company has 44,000 defective units that have already cost $302,000 to manufacture. The units can be sold as scrap for $178,800 or reworked for $226,500 and then sold for $427,200. If the company decides to rework the units, incremental income equals:

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