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A company has two products: A and B. Product A has sales of $100,000, variable cost of $50,000, direct fixed costs of $40,000, and allocated
A company has two products: A and B. Product A has sales of $100,000, variable cost of $50,000, direct fixed costs of $40,000, and allocated common fixed costs of $20,000. Product B has sales of $150,000, variable cost of $70,000, direct fixed costs of $30,000, and allocated common fixed costs of $40,000. If product A is dropped, what will be the profit of the company?. Single choice.
$10,000 profit
$0 (no profit or loss)
$10,000 loss
$20,000 profit
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