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Signal mistakenly produced 1,325 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the d

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Answer #1
Scrap Rework
Sales 1,325 x 33 = 43,725 1,325 x 130 = 172,250
Rework costs 0 -1,325 x 84 = -111,300
Total $43,725 $60,950
Net Incremental Income $17,225

Net incremental income = 60,950-43,725

= $17,225

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