Rosa Company produced 1,225 defective phones due to a production error. The phones had cost $67,000 to produce. A salvagee company will buy the defective phones as scrap for $49,000. It would cost Rosa $98,000 to rework the phones. If the phones are reworked, Rosa could sell them for $164,150. (a) Prepare a scrap or rework analysis of income effects. (b) Should Rosa scrap or rework the phones? Answer is complete but not entirely correct