Signal mistakenly produced 1,000 defective cell phones. The phones cost $62 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 $145 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income