Question
Product A Product B Revenue $95,000 $89,000 Total variable costs 57,000 45,390 Total contribution margin $38,000 $43,610 Total fixed costs Avoidable 14,003 29,325 Unavoidable 11,457
| Product A | Product B | |||
| Revenue | $95,000 | $89,000 | ||
| Total variable costs | 57,000 | 45,390 | ||
| Total contribution margin | $38,000 | $43,610 | ||
| Total fixed costs | ||||
| Avoidable | 14,003 | 29,325 | ||
| Unavoidable | 11,457 | 21,235 | ||
| Profit | $12,540 | $-6,950 | ||
If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $29,400, with $4,600 of additional fixed costs, what will be the effect on firm profits?
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Dcaa Audits Widespread Problems With Audit Quality Require Significant Reform: Gao 09 1009t
Authors: U. S. Government Accountability Office
1st Edition
1287232027, 978-1287232025
