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QS 23-9 Scrap or rework LO A1 Signal mistakenly produced 1,300 defective cell phones. The phones cost $66 each to produce. A salvage company will
QS 23-9 Scrap or rework LO A1 Signal mistakenly produced 1,300 defective cell phones. The phones cost $66 each to produce. A salvage company will buy the defective phones as they are for $34 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $132 each. Assume there is no opportunity cost assoclated with reworking the phones. Compute the Incremental net Income from reworking the phones. Rework Scrap Sales Rework costs Total
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