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The following are the budgeted profit functions for X Company's two products, A and B for next year Product AP-40 (R) - 531,140 Product P50(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 AP-40 (R) - 531,140 Product P50(R) - $56,530 where is event. Budosted revenue for the two products are 50,000 and 193,000, respectively. Avoidable fixed costs for the two products are 510,930 and 5:32,707, respectively The company is considering dropping Product 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 Aby $34.000, but that will require $2,600 of additional costs 1 X Company drops and increases from Arm profits will change by A -1.111 3-1100C 3:1,236 D 32170 E12,713 F3,391 Tes0/90

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