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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 = .54 (R) -
The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .54 (R) - $56,140 Product B: P = .41 (R) - $24,300 where R is revenue. Budgeted revenue for the two products are $93,000 and $86,000, respectively. Avoidable fixed costs for the two products are $35,930 and $13,608, 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 $2,600 of additional fixed costs. If X Company drops A and increases revenue from B, firm profits will change by Submit Answer Tries 0/3
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