Signal mistakenly produced 1,000 defective cell phones. The phones cost $60 each to produce. A salvage company will buy the defective phones as they are for $30 each. It would cost Signal $80 per...

Signal mistakenly produced 1,000 defective cell phones. The phones cost $60 each to produce. A salvage

company will buy the defective phones as they are for $30 each. It would cost Signal $80 per phone to

rework the phones. If the phones are reworked, Signal could sell them for $120 each. Signal has excess

capacity. Should Signal scrap or rework the phones?