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not quite understanding, help would be appreciated! The following are the budgeted profit functions for X Company's two products, A and B, for next year:
not quite understanding, help would be appreciated!
The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .52 (R) - $58,400 Product B: P = .42 (R) - $27,170 where R is revenue. Budgeted revenue for the two products are $95,000 and $93,000, respectively. Unavoidable fixed costs for the two products are $22,192 and $10,868, respectively. The company is considering dropping Product A because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Product B by $35,000, but that will require $2,800 of additional fixed costs. If X Company drops A and increases revenue from B, firm profits will change byStep by Step Solution
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