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Signal mistakenly produced 1,400 defective cell phones. The phones cost $69 each to produce. A...

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Accounting

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Signal mistakenly produced 1,400 defective cell phones. The phones cost $69 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $88 per phone to rework the phones. If the phones are reworked, Signal could sell them for $140 each. Signal has excess capacity. Should Signal scrap or rework the phones? Scrap Rework Sales Rework costs Income

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