Wenig Inc Has Some Material That Originally Cost $73,500

Multiple Choice

Wenig Inc. has some material that originally cost $73,500. The material has a scrap value of $45,600 as is, but if reworked at a cost of $6,600, it could be sold for $58,100. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap?

A) decrease of $22,000
B) decrease of $67,600
C) increase of $51,500
D) increase of $5,900