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Signal mistakenly produced 1,125 defective cell phones. The phones cost $63 each to produce. A salvage company will buy the defective phones as they are
Signal mistakenly produced 1,125 defective cell phones. The phones cost $63 each to produce. A salvage company will buy the defective phones as they are for $34 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $150 each. Signal has excess capacity. Should Signal scrap rework the phones? Scrap Rework Sales Rework costs Income
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