Signal mistakenly produced 1,500 defective cell phones. The phones cost $68 each to produce A salvage company will buy the defective phones as they are for $38 each. It would cost Signal $90 per phone to rework the phones. If the phones are reworked, Signal could sell them for $138 each Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income Che A guitar manufacturer is considering eliminating its electric guitar division because its $94,680 expenses are higher than its $87.480 sales. The company reports the following expenses for this division Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 67,500 11,550 950 7,200 Unavoidable Expenses $ 2,95 1,900 2,630 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division ist Sales Expenses Total expenses Net income (loss) Revenues from electric guitar division Allen Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division is: Sales Expenses Total expenses Net income (loss) Revenues from electric guitar division Avoidable expenses Revenues are greater than (less than) avoidable expenses by