Signal mistakenly produced 1.200 defective cell phones. The phones cost $70 each to produce A salvage company will buy the defective phones as they are for $36 each. It would cost Signal $80 per phone to rework the phones. If the phones are reworked Signal could sell them for $146 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income