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#6. The following income statement is for X Company's two products, A and B: Product A Product B Revenue $94,000 $88,000 Total variable costs 49,820
#6. The following income statement is for X Company's two products, A and B: Product A Product B Revenue $94,000 $88,000 Total variable costs 49,820 49,280 Total contribution margin $44,180 $38,720 Total fixed costs Avoidable 28,595 13,010 Unavoidable 26,395 12,500 Profit $-10,810 $13,210 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $29,500, with $4,800 of additional fixed costs, what will be the effect on firm profits?
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