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. assume there is no opportunity cost associated with reworking the phones. compute the incremental net income from reworking the phones.

Number of defective cell phone produced = 1000.

Defective phones cost $30 each.

Cost of defective phones =30x1000=30,000.

Cost of producing 1000 cell phones = 60x1000=$60,000.

Cost of rework= 80x1000=80,000.

Rework phone sale value =120x1000=120,000.

Incremental net income = 120,000-80,000-30,000= $10,000.

The  incremental net income from reworking the phones is $10,000.

step-by-step explanation:

we have

using a graphing tool

see the attached figure

this is a quadratic equation (vertical parabola) open up

the vertex is a > vertex

the domain of the function is all real > interval (-∞,∞)

the range of the function is the > [-6.125,∞)

the function has two x->   and

the function is increasing over the > (0.25,∞)

the function is decreasing over the > (-∞,0.25)