Signal mistakenly produced 1,475 defective cell phones. The phones cost $62 each to produce. A salvage company will buy the defective phones as they are for $30 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 Sales Rework costs Income Pada 1404 Helix Company has been approached by a new customer to provide 1,500 units of its regular product at a special price of $7 per unit. The regular selling price of the product is $9 per unit. Helix is operating at 80% of its capacity of 11,500 units. Identify whether the following costs are relevant to Helix's decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.70 per unit shipping cost. There will be no additional administrative expenses because of this order. Calculate the operating income from the order Revenue (cost) per unit Relevant Not Relevant Relevant Revenues (Costs) $ 7.00 a. Selling price b. Direct materials cost c. Direct labor cost d. Variable manufacturing overhead c. Fixed manufacturing overhead Regular selling expenses g. Additional selling expenses h. Administrative expenses (1.00) (2.00) (1.80) (0.75) (1.30) (0.70) (0.80) 1,500 0 $ Total operating income(loss) from special order Based on financial considerations alone, should Helix accept this order of the special price?