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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 = .42 (R) -
The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .42 (R) - $24,700 Product B: P = .52 (R) - $55,550 where R is revenue. Budgeted revenue for the two products are $87,000 and $93,000, respectively. Unavoidable fixed costs for the two products are $8,892 and $22,776, 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 $37,700, but that will require $2,200 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by OA: $-1,952 OB: $-2,439| OC: $-3,049 OD: $-3,812 | OE: $-4,764 OF: $-5,956|| Submit Answer Tries 0/99
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