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Product A $87,700 35,957 Product B $85,600 34,240 Sales Contribution margin Fixed costs Avoidable Unavoidable Profit 43,540 29, 110 $-36,693 24,930 6,230 $3,080 Because of
Product A $87,700 35,957 Product B $85,600 34,240 Sales Contribution margin Fixed costs Avoidable Unavoidable Profit 43,540 29, 110 $-36,693 24,930 6,230 $3,080 Because of the budgeted loss for Product A, X Company is considering dropping it in 2022. If Product A is dropped, the marketing department thinks that sales of Product B can be increased by $17,340. If X Company drops Product A in 2022 and increases sales of Product B, company profits will change by OA: $4,6401 B: $6,171 C: $8,208 D: $10,917 OE: $14,519 OF: $19,310
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