3. value 1.66 points A company must decide between scrapping or reworking units that do not pass inspection The company has 13,000 defective units that cost $5,30 per unit to manufacture The units can be sold as is for $3.00 each, or they can be reworked for $5.00 each and then sold for the full price of $8.30 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $5.30 each, and sell them at the full price of $8.30 each What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Incremental income (oss) 0 $ The company should 2. value 1.66 points Gilberto Company currently manufactures 80,000units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part Gilberto is considering buying the part from a supplier for a quoted price of $3.00 per unit guaranteed for a three-year period Calculate the total incremental cost of making 80,000 units (Round cost per unit answers to 2 decimal places.) Incremental Costs to Make Relevant Relevant fixed Amount per Unit costs Total relevant costs Total incremental cost to make S Type here to search OBI