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QS 23-10 (Algo) Scrap or rework LO P2 Fosa Company produced 1,450 defective phones due to a production error. The phones had cost $66,000 to

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QS 23-10 (Algo) Scrap or rework LO P2 Fosa Company produced 1,450 defective phones due to a production error. The phones had cost $66,000 to produce. A salvage zompany will buy the defective phones as scrap for $56,550. It would cost Rosa $124,700 to rework the phones. If the phones are reworked, Rosa could sell them for \$197,200. (a) Prepare a scrap or rework analysis of income effects

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