[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]
BT&T Corporation manufactures telephones.Recently,the company produced a batch of 600 defective telephones at a cost of $9,000.BT&T can sell these telephones as scrap for $9 each.It can also rework the entire batch at a cost of $6,500,after which the telephones could be sold for $20 per unit.
-If BT&T reworks the defective telephones,by how much will its operating income change?

A) Increase by $500
B) Decrease by $1,600
C) Increase by $5,500
D) Decrease by $6,500