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Questions 7 and 8 refer to the following information: The following information is for X Company's two products, A and B, last year: Sales Total

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Questions 7 and 8 refer to the following information: The following information is for X Company's two products, A and B, last year: Sales Total variable costs Total fixed costs Profit Product A $93,610 49,613 72,070 Product B $87,290 48,882 26,150 $-28,073 $12,258 Because of the reported loss for Product A, X Company is considering dropping it. Further analysis reveals that $25,520 of Product A's fixed costs and $5,850 of Product B's fixed costs are common costs that the company allocates to the two products. 7. If X Company drops Product A, company profits will change by -2553 Submit Answer Incorrect. Tries 2/5 Previous Tries 8. Assume that sales of Product B can be increased by $18,270 if Product A is dropped. What will be the effect of this increase on company profits? Submit Answer Tries 0/5

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