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1 QS 23-10 Scrap or rework LO P2 Signal mistakenly produced 1,500 defective cell phones. The phones cost $66 each to produce. A salvage company

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1 QS 23-10 Scrap or rework LO P2 Signal mistakenly produced 1,500 defective cell phones. The phones cost $66 each to produce. A salvage company will buy the defective phones as they are for $31 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $144 each. Signal has excess capacity. Should Signal scrap or rework the phones? Rework Scrap + Sales Rework costs Income

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