Question

Signal mistakenly produced 10,000 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 $ 110 each. Compute the incremental net income from reworking the phones.



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  • CreatedNovember 29, 2013
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