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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) - $59,570 Product B: P=.41 (R) - $28,170 where Ris revenue. Budgeted revenue for the two products are $88,000 and $94,000, respectively. Avoldable fixed costs for the two products are $38,720 and $15,775, 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 $34,100, 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: $2,134 OB: $2,839 Oc: $3,776 OD: $5,022 OE: $6,679 OF $8,883 Submit Answer Tries 0/99
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