QS 25-10 Scrap or rework LO P2 Signal mistakenly produced 1,025 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $84 per phone to rework the phones. If the phones are reworked, Signal could sell them for $148 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income Increase net income by Decrease net income by