Signal mistakenly produced 1,300 defective cell phones. The phones cost $63 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $86 per phone to rework the phones. If the phones are reworked, Signal could sell them for $136 each. Signal hos excess capacity. Should Signal scrap or rework the phones? Scrap Rowork Sales Rework costs Income Rory Company has a machine with a book value of $91,000 and a remaining five-year useful life. A new machine is available at a cost of $121,000, and Rory can also receive $65,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost) Gelb Company currently manufactures 48,000 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $79,000 per year, and allocated fixed costs are $66,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 48,000 units and buying 48,000 units. Should it continue to manufacture the component or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 48,000 units. (Round "variable cost per unit answers to 2 decimal places) Incremental Costs to Make Relevant Amount per Unit Relevant Fixed Costs Total Relevant Costs Variable cost per unit Fixed manufacturing costs Total incremental cost to make $ 0