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QS 25-10 Scrap or rework LO P2 Signal mistakenly produced 1,200 defective cell phones. The phones cost $69 each to produce. A salvage company
QS 25-10 Scrap or rework LO P2 Signal mistakenly produced 1,200 defective cell phones. The phones cost $69 each to produce. A salvage company will buy the defective phones as they are for $31 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $132 each. Signal has excess capacity. Should Signal scrap or rework the phones? Sales Rework costs Income Scrap Rework Help
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