AS 25-10 (Algo) Scrap or rework LO P2 Rosa Company produced 1,325 defective phones due to a production error. The phones had cost $65,000 to produce. A salvage company will buy the defective phones as scrap for $43.725. It would cost Rosa $116.600 to rework the phones. If the phones are reworked, Rosa could sell them for $180,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should Posa scrap or rework the phones