QS 23-10 Scrap or rework LO P2 Signal mistakenly produced 1100 defective cell phones. The phones cost $67 each to produce. A salvage company will buy the defective phones as they are for $31 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $144 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income QS 23-13 Segment elimination LO P4 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 45% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales Variable costs Fixed costs Direct Indirect Operating loss $ 255,000 149,000 33,000 57,000 $ (16,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by Net Required 18 QS 23-13 Segment elimination LO P4 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 45% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales Variable costs Fixed costs Direct Indirect Operating loss $ 255,000 149,000 33,000 57,000 $ (16,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Based on this information, should the division be eliminated? Based on this information, should the division be eliminated?