27] Chang Industries has 1,600 defective units of product that have already cost $13.60 each to produce. A salvage company will purchase the defective units as they are for $4.60 each. Chang's production manager reports that the defects can be corrected for $6.40 per unit, enabling them to be sold at their regular market price of $20.20. The incremental income or loss on reworking the units is:
$14,720 loss.
$14,720 income.
$10,240 loss.
$24,960 income.
$22,080 income.