2.) please help

Exercise 23-4 (Algo) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $41,600 or reworked for $76,800 and then sold for $132,800. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? Rework (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Scrap 43,200 $ $ 13,600 78,400 (64,800) Income $ 43,200 $ Incremental income $ 14,400 (b) The company should: Rework the units