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The answer is not 2706. I posted this earlier and it was wrong The following income statement is for X Company's two products, A and
The answer is not 2706. I posted this earlier and it was wrong
The following income statement is for X Company's two products, A and B: Product A $94,000 55,460 $38,540 Product B $94,000 51,700 $42,300 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 15,775 12,395 $10,370 31,236 23,564 $-12,500 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 $36,800, with $4,600 of additional fixed costs, what will be the effect on firm profits? -2706Step by Step Solution
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