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Questions 7 and 8 refer to the following problem: The following information is for X Company's two products, A and B: Revenue: A)$92,000 B)$89,000 Total

Questions 7 and 8 refer to the following problem:

The following information is for X Company's two products, A and B:

Revenue: A)$92,000 B)$89,000

Total variable costs: A)$53,360 B)$53,400

Total contribution margin: A)$38,640 B)$35,600

Total fixed costs:

Avoidable: A)$25,915 B)$17,253

Unavoidable: A)$25,915 B)$14,697

Profit: A)$-13,190 B)$3,650

7. If X Company drops Product A because it shows a loss, what will be the effect on firm profits?________________

8. Assume that if X Company drops Product A, it can use the vacant space to increase sales of Product B by $37,200, but $4,800 of additional fixed costs will be incurred. This use of the vacant space will result in an increase in X Company's profits of_______________________

Only ONE try left for both parts. I posted this earlier and the answer was wrong. Please help and give the right answer!!!

Thank you!

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