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Signal mistakenly produced 1,225 defective cell phones. The phones cost $62 each to produce. A salvage company will buy the defective phones as they are

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Signal mistakenly produced 1,225 defective cell phones. The phones cost $62 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 $142 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework 41650 Sales Rework costs Income

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