Compute the incremental net income from reworking the phones

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Question - Signal mistakenly produced 1,200 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $35 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $140 each. Assume there is no opportunity cost associated with reworking the phones. Compute the incremental net income from reworking the phones.

Reference no: EM132534632

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