Signal mistakenly produced 1,125 defective cell phones. The phones cost $64 each to produce. A salvage company will buy the defective phones as they are for $37 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $134 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales 41,625 $ 150,750 Rework costs Income