The company should make decision between scrapping or reworking units which do not pass inspection. Company contains 19,000 defective units which cost $5.60 per unit to manufacture. Units can be sold as is for $2.50 each, or they can be reworked for $3.50 each and then sold for full price of $9.80 each. If units are sold as is, company will have to make 19,000 replacement units at the cost of $5.60 each, and sell them at full price of $9.80 each. Determine incremental income from selling units as scrap and reworking and selling units? Should company sell units as scrap or rework them?