Roxie Company Has 17,500 Units of Its Sole Product That

Roxie Company has 17,500 units of its sole product that it produced last year at a cost of $45 each.This year's model is superior to last year's and the 17,500 units cannot be sold for their regular selling price of $80 each.Roxie has two alternatives for these items: (1) they can be sold to a wholesaler for $35 each,or (2) they can be reworked at a total cost of $450,000 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 $600,000 more than scrapping.
B) Scrapping, because profit will increase by $612,500 more than reworking.
C) Reworking, because profit will increase by $12,500 more than scrapping.
D) Scrapping, because profit will increase by $12,500 more than reworking.
E) Reworking because profit will increase by $450,000 more than scrapping.