COLEGICE AGE Artis Andai At the end of the years capacity to produce the produce the y offered to buy 400 units of the best only for $12.00 X Company AO S BOSCO POLO FOST X * Company's production manager that that thei and de mis hwe requedad est labor costs per unit of $0.5 and s p e nd the special effect of these changes would pent be to do the special order city .6 AO SU C D O 2 OS. YO SI de $1500. The com X Company's marketing managers that in order for sales to contine 66.700 units this year, the company would have had to reduce the regular singer h ar to $1664 The result of this price reduction would have been to reduce X Company's prodit this year by 7 8 9 110 111 14 012 ( 5) 15 0 879 E SH - 1. 4 13 8pc/The following income statement is for X Company and its only two products - AndB Total Product A Product B Sales $17.910 $89,140 SS5.5TD Variable Costs 96151 46.820 49.631 Contribution margin $77.469 $41,620 $35,939 Fixed costs Avoidable 53,000 31.890 21.110 Unavoidable 32.650 27,250 5.400 Profit 8-8,191 $-17,620 $9,429 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be 8. AO S-17,821 BO 8-20,850 CO S-21,386 DO S-28,512 EO S-33.394 FO S-39,071 COLEGICE AGE Artis Andai At the end of the years capacity to produce the produce the y offered to buy 400 units of the best only for $12.00 X Company AO S BOSCO POLO FOST X * Company's production manager that that thei and de mis hwe requedad est labor costs per unit of $0.5 and s p e nd the special effect of these changes would pent be to do the special order city .6 AO SU C D O 2 OS. YO SI de $1500. The com X Company's marketing managers that in order for sales to contine 66.700 units this year, the company would have had to reduce the regular singer h ar to $1664 The result of this price reduction would have been to reduce X Company's prodit this year by 7 8 9 110 111 14 012 ( 5) 15 0 879 E SH - 1. 4 13 8pc/The following income statement is for X Company and its only two products - AndB Total Product A Product B Sales $17.910 $89,140 SS5.5TD Variable Costs 96151 46.820 49.631 Contribution margin $77.469 $41,620 $35,939 Fixed costs Avoidable 53,000 31.890 21.110 Unavoidable 32.650 27,250 5.400 Profit 8-8,191 $-17,620 $9,429 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be 8. AO S-17,821 BO 8-20,850 CO S-21,386 DO S-28,512 EO S-33.394 FO S-39,071