Sandlewood Company Has 15,000 Units of Its Sole Product That

Sandlewood Company has 15,000 units of its sole product that it produced last year at a cost of $43 each.This year's model is superior to last year's and the 15,000 units cannot be sold for their regular selling price of $80 each.Sandlewood has two alternatives for these items: (1) they can be sold to a wholesaler for $30 each,or (2) they can be reworked at a total cost of $400,000 and then sold for $60 each.The company has enough idle capacity to rework these items without affecting any new production.Which choice would increase the company's profits the most?

A) Reworking, because profit will increase by $500,000 more than scrapping.
B) Scrapping, because profit will increase by $450,000 more than reworking.
C) Reworking, because profit will increase by $50,000 more than scrapping.
D) Scrapping, because profit will increase by $50,000 more than reworking.
E) Reworking because profit will increase by $450,000 more than scrapping.