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The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .51 (R) -
The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .51 (R) - $57,820 Product B: P = .41 (R) - $28,040 where R is revenue. Budgeted revenue for the two products are $89,000 and $93,000, respectively. Avoidable fixed costs for the two products are $34,692 and $16,544, respectively. The company is considering dropping Product A because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Produ B by $35,300, but that will require $2,400 of additional fixed costs. If X Company drops A and increases revenue from B, firm profits will change by A: $1,077 B: $1,217 Oc: $1,375 OD: $1,554 OE: $1,756 OF: $1,984 Submit Answer Tries 0/99
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