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Firms profits will change by? The following information is for X Company's two products A and B: Product Product B A Sales $95,000 $85,000 Total
Firms profits will change by?
The following information is for X Company's two products A and B: Product Product B A Sales $95,000 $85,000 Total contribution 41,800 34,000 margin Fixed costs: Avoidable 25,000 49,000 Unavoidable 30,000 8,000 Profit $8,800 $-45,000 The company is considering dropping Product B because of the $45,000 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $19,000. If X Company drops Product B and increases sales of A, firm profits will change by Tries 0/3 Submit Step by Step Solution
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