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Please help, am doing it wrong... A company must...

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Accounting

Please help, am doing it wrong...

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A company must decide between scrapping or reworking units that do not pass Inspection. The company has 13.000 defective units that have already cost $132.000 to manufacture. The units can be sold as scrap for $37,700 or reworked for $63,700 and then sold for $110,500. (a) Prepare a scrap or rework analysis of Income effects. (b) Should the company sell the units as scrap or rework them? S (a) Scrap or Rework Analysis Revenue from scrapped/reworked units Cost of reworked units Income Scrap Rework 37,700 5 63,700 132,000 110,000 169,700 $ (46,300) S Incremental income S 72.300 (b) The company should: Rework the units

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