Signal mistakenly produced 1,100 defective cell phones. The phones cost $67 each to produce. A salvage company will buy the defective phones as they are for $31 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $140 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales $ 34,100 $ 154,000 Rework costs Income 0 94,600 $ 34,100 $ 59,400 Increase net income by Decrease net income by