Answer: Rework the phones
Explanation:
The phones have already been produced so the cost price of $70 does not matter as it is a sunk cost.
The decision the company makes between scrap and reworking will depend on which option bring in more money.
Scrap = $39
Reworking:
= Price after reworking - Cost to rework
= 146 - 82
= $64
Incremental income of reworking over scrap:
= 1,075 * (64 - 39)
= $26,875
<em>Signal makes an incremental income of $26,875 if they rework the phones so they should do that. </em>
This question is a little but more difficult to solve, as it depends on the situation. For certain banks it is not worth it due to rates that must be payed, but in your case here I believe that it would be TRUE.
The examples of firms and the goods they produce in the following market systems are:
Perfect competition- Foreign exchange markets.
Currency
Oligopoly - Auto Industry.
Cars.
Monopoly - Providers of water.
Water
Monopolistic competition - Restaurants
Food
Effective competition- Supermarkets
Wide range of products
<h3>What is Monopoly?</h3>
This refers to the situation where one business has total control of a market share and has no competition in the market.
Read more about monopoly here:
brainly.com/question/13113415
