Signal mistakenly produced 1,075 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defective phones as they are for $34 each. It would cost Signal $86 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? Scrap Rework Sales $ 36,550 Rework costs Income