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Rosa Company produced $1,225$ defective phones due to a production error. The phones had cost $$69,000$ to produce. A salvage company will buy the defective phones as scrap for $$47,775.$ It would cost Rosa $$107,800$ to rework the phones. If the phones are reworked, Rosa could sell them for $$176,400.$

$($a$)$ Prepare a scrap or rework analysis of income effects.

$($b$)$ Should Rosa scrap or rework the phones?

$\backslash$table$[[($a$)$ Scrap or Rework Analysis,Scrap,Rework$],[$Revenue from scrapped$/$reworked units,,$],[$Cost of reworked units,,$],[$Income$,,],[,,],[($b$)$ The company should:,,$]]$