Ch 10: Homework 3 2 points Seved Book Hint QS 10-10 (Algo) Scrap or rework LO P2 Rosa Company produced 1,150 defective phones due to a production error. The phones had cost $68,000 to produce. A salvage company will buy the defective phones as scrap for $39,100. It would cost Rosa $101,200 to rework the phones. If the phones are reworked, Rosa could sell them for $170,200. (a) Prepare a scrap or rework analysis of income effects. (b) Should Rosa scrap or rework the phones? (a) Scrap or Rework Analysis Scrap Rework Revenue from scrapped/reworked units Cost of reworked units Income Print References (b) The company should