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Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defective phones as they are
Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defective phones as they are for $33 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $130 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones. ork the phones, the phones are rewo Scrap Rework Sales Rework costs Total
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