Signal mistakenly produced 1,050 defective cell phones. The phones cost $68 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $88 per phone to rework the phones. If the phones are reworked, Signal could sell them for $142 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales - Rework costs Income