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Signal mistakenly produced 1,225 defective cell phones. The phones cost $60 each to produce. A...

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Accounting

Signal mistakenly produced 1,225 defective cell phones. The phones cost $60 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 $138 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones.

Scrap Rework
Sales
Rework costs
Total

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