Rosa Company produced 1.050 defective phones due to a production error. The phones had cost $67.000 to produce A salvage company will buy the defective phones as scrap for $37,800. It would cost Rosa $90,300 to rework the phones. If the phones are reworked, Rosa could sell them for $149,100 (a) Prepare a scrap or rework analysis of income effects. (b) Should Rosa scrap or rework the phones? Scrap Rework () Scrap or Rework Analysis Revenue from scrappedireworked units Cost of reworked units Income (b) The company should