Warner Company Has Some Material That Originally Cost $41,500

Multiple Choice

Warner Company has some material that originally cost $41,500.The material has a scrap value of $21,600 as is, but if reworked at a cost of $4,600, it could be sold for $29,100.What would be the incremental effect on the company's overall profit if it is reworked?

A) $17,000 decrease.
B) $38,600 decrease.
C) $2,900 increase.
D) $24,500 increase.