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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 = .40 (R) -

The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .40 (R) - $25,310 Product B: P = .52 (R) - $56,680 where R is revenue. Budgeted revenue for the two products are $88,000 and $91,000, respectively. Unavoidable fixed costs for the two products are $9,618 and $24,372, respectively. The company is considering dropping Product B 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 A by $35,100, but that will require $2,400 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by

A: $-3,372 B: $-3,811 C: $-4,306 D: $-4,866 E: $-5,499 F: $-6,213

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