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The following are the budgeted profit functions for X Company's two products, A and B, next year: Product A: P40 (R) $29,740 . Product B:
The following are the budgeted profit functions for X Company's two products, A and B, next year: Product A: P40 (R) $29,740 . Product B: P = .42 (R)-$51,020 where R is revenue. Budgeted revenue for the two products are $94,000 and $91,000, respectively. Unavoidable fixed costs for the two products are $11,301 and $21,428, respectively. The company is considering dropping Product B; if it does, the resulting freed-up resources can be used to increase revenue from sales of Product A by $14,800, with no additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by Submit Answer Tries 0/3
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