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98. The following information is for X Company's two products - A and B: Product A Product B Revenue $95,000 $92,000 Variable Costs 56,050 55,200
98.
The following information is for X Company's two products - A and B:
Product A | Product B | |
Revenue | $95,000 | $92,000 |
Variable Costs | 56,050 | 55,200 |
Fixed costs | $53,050 | $32,830 |
Profit | $-14,100 | $3,970 |
$10,610 of Product A's fixed costs are directly related to Product A; $5,581 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product A because of its reported loss
If it drops Product A, what will be the effect on firm profits?
A: $-14,510 | B: $-18,138 | C: $-22,672 | D: $-28,340 | E: $-35,425 | F: $-44,281 |
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