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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 = .53 (R) -

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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 = .53 (R) - $58,370 Product B: P = .44 (R) - $28,420 where R is revenue. Budgeted revenue for the two products are $91,000 and $90,000, respectively. Unavoidable fixed costs for the two products are $21,013 and $12,789, 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 Product B by $37,500, but that will require $2,800 of additional fixed costs. If X Company drops A and increases revenue from B, firm profits will change by OA: $926 OB: $1,158 OC: $1,447 OD: $1,809 OE: $2,261 OF: $2,827

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