QS 23-10 (Algo) Scrap or rework LO P2 Rosa Company produced 1,275 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 $42,075. It would cost Rosa $107,100 to rework the phones. If the phones are reworked, Rosa could sell them for $175,950 . (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 (b) The company should:A company has already spent $5,100 to harvest tomatoes. The tomatoes can be sold as is for $91,800. Instead, the company could incur further processing costs of $49,000 and sell the resulting salsa for $128,500. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the company sell as is or process further? Process (a) Sell or Process Analysis Sell as is Further Revenue Costs Income (loss) (b) The company should