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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) - $31,060 Product B: P = .52 (R) - $55,520 where R is revenue. Budgeted revenue for the two products are $90,000 and $95,000, respectively. Avoidable fixed costs for the two products are $18,947 and $33,312, 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 $38,000, 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 Submit Answer Incorrect. Tries 2/5 Previous Tries Communication Blocked Send Feedback
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